Nextech3D.AI to close Krafty Labs acquisition Jan. 2

Executive Summary

• Nextech3D.AI has completed due diligence on its acquisition of Krafty Labs, a revenue-generating AI-driven event engagement company, with closing scheduled for January 2, 2026, subject to CSE approval.
• Krafty Labs contributes approximately $1.2 million in year-to-date 2025 revenue with 72% gross margins and a blue-chip customer base, enhancing Nextech3D.AI's AI-first event platform.
• CEO Evan Gappelberg has committed to a $321,917 insider investment via an 18-month convertible note, demonstrating strong alignment with shareholders.

Key Details

• Acquisition Target: Krafty Labs, an AI-driven event engagement and experiential technology company serving global enterprise customers.
• Closing Date: January 2, 2026.
• Regulatory Status: Subject to customary closing conditions, including Canadian Securities Exchange (CSE) approval.
• Target Financials:
  • Year-to-date 2025 Revenue: ~$1.2 million.
  • Gross Margins: 72%.
  • Customer Base: Highly attractive blue-chip enterprise and association customers.
• Strategic Rationale: Enhances Nextech3D.AI's AI-first event platform, expands reach into higher-value enterprise/association customers, and is expected to drive increased average contract values and deeper customer relationships.
• CEO Investment Structure:
  • Investor: Evan Gappelberg, CEO.
  • Principal Amount: $321,917.
  • Instrument: 18-month convertible note.
  • Interest Rate: 12% per annum.
  • Conversion Terms: Convertible into 2,299,412 common shares at a fixed price of 14 cents per share (at CEO's sole discretion).
  • Warrants: CEO receives 2,299,412 common share purchase warrants as compensation.
  • Warrant Terms: Exercise price of 16.5 cents per share; term of three years.
• Regulatory Classification: Related-party transaction under Multilateral Instrument 61-101. Exemptions from formal valuation and minority shareholder approval are relied upon as the transaction does not exceed 25% of the company's market capitalization.
• Current Shareholding: Mr. Gappelberg remains the largest shareholder with 32,757,017 common shares.

Notable Quotes

• "We believe the acquisition of Krafty Labs, combined with my personal investment in the company, represents a strong vote of confidence in Nextech3D.AI's direction and execution." — Evan Gappelberg, CEO
• "With due diligence complete and a closing date set, we are focused on integrating Krafty Labs and accelerating growth while continuing to build long-term shareholder value." — Evan Gappelberg, CEO