NexTech AR Solutions (CSE: NTAR) this morning is seeking out a means of getting a bump in its share price, announcing that it is utilizing $2.0 million in cash from its treasury to acquire bitcoin in the hopes that investors flock to it on this news. The investment is said to be “part of a new capital diversification and allocation strategy.”
Opening itself up to further such announcements, the company referred to the move as an “initial investment” .. “but may add more in 2021.” Evan Gappelberg comments on the news by stating, “This initial investment reflects our belief that Bitcoin is a long-term store of value and an attractive investment asset with more long-term appreciation potential than holding cash, which is currently yielding 0.06%.”
He then goes on to repeat the same talking points highlighted endlessly over social media this weekend, including its market capitalization comparison to that of gold, a store of value that has been used for millenia.
The funds for this transaction evidently will come from recent financings conducted by the company, with the firm raising $13.2 million via a marketed short form prospectus in August. At the time, funds were allocated for sales and marketing expenses, research and development, working capital, potential strategic acquisitions, and general corporate purposes. The company maintained a cash position of $16.4 million as of September 30, 2020.
NexTech AR Solutions last traded at $6.52, with a valuation of $484.8 million.
Information for this briefing was found via Sedar and Nextech AR. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
