NexTech To Acquire Revenue Generating Ecommerce Business
VANCOUVER: NexTech AR Solutions Corp. (the Company or NexTech) (CSE: NTAR) (OTC: NEXCF) (FSE: N29) is pleased to announce that it has entered into an agreement to acquire AR Ecommerce, LLC (AR Ecommerce) in consideration for two million common shares of NexTech.
This acquisition will:
Build a strong financial base for our business with key eCommerce partners already in place like Amazon, PayPal, eBay, and established relationships with large well-known brands like Miele, Dyson, and Electrolux.
Accelerate the launch of existing and exciting new AR and AI technologies.
Advance and significantly enhance our knowledge of the AR customer journey through analyzing real time data from our xAPI analytics already installed on site.
Enable the fast integration of a broad range of AR and AI capabilities onto the site creating a one of a kind eCommerce AR/AI showcase for consumers and prospects.
This strategic acquisition allows us to jump ahead of the pack in the AR eCommerce space and provides a solid foundation of assets for NexTech to leverage into additional eCommerce acquisitions, comments Evan Gappelberg CEO of NexTech. He continues, If we can buy eCommerce companies and increase the velocity of sales with the integration of our AR and AI technology, then we see that as a very big win and an exciting business opportunity. With this acquisition we're not just offering AR as a technology to others but using it ourselves to create the most robust AR/AI technology stack available in the market today.
The company is seeing very positive early results from integration of its web enabled AR with just one product. These results include:
The first ARitized product on site generated 1 months worth of sales ($5,000) in just 1 week.
Overall dwell time on page for the ARitized product increased 30% over a 4 week span.
Before AR the average visitor to that product page was worth around $20.
After the integration of the NexTech AR eCommerce solution the value per visitor jumped all the way to $43.06.
Over the next few weeks NexTech will be launching 10 more AR products onto the site. Next month the company expects to advance its eCommerce capabilities as it integrates IBM Watson's Machine Learning into the site. Owning its own eCommerce site allows the company to test and integrate new technologies creating additional value for its eCommerce business, its AR platform and shareholders.
Reuben Tozman, COO of NexTech comments What's incredibly exciting here is that we're not even close to optimizing the experience for the VCM business and it's already having a significant impact on sales and dwell times. It's our strong belief that nobody is better to provide solutions for the eComm industry than eComm business owners who know how to get results!
Paul Duffy, President of NexTech comments our AR, AI and predictive Analytics provide a unique force-multiplier for eCommerce optimization. With initial efforts validating the up-tick in conversions, we are excited to steer our scale from the coming adoption.
According to Statista, global eCommerce sales in 2019 will hit over $3.4 trillion dollars with 55.3% occurring on a desktop computer and 44.7% happening on a mobile device. NexTech's web enabled AR eCommerce solution works on every browser including Chrome, Firefox, Safari and others and on every device including desktops, laptops, iPads and all mobile phones. With a web enabled AR solution NexTech has eliminated the need to download an app which was the biggest friction point of AR adoption.
In consideration for the acquisition, NexTech has agreed to issue 1,000,000 common shares to Reuben Tozman and 1,000,000 common shares to Evan Gappelberg, both of whom are directors and officers of NexTech. As a result, the proposed acquisition of AR Ecommerce from Mr. Tozman and Mr. Gappelberg by NexTech constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61- 101). NexTech is relying on the exemptions from the formal valuation and minority approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the transaction does not exceed 25% of NexTech's market capitalization.