Nextech3D.ai to Acquire Krafty Labs; CEO Ups Personal Stake with Convertible Note
TORONTO, ON - Nextech3D.ai (CSE: NTAR) (OTCQX: NEXCF) (FSE: 1SS) has completed due diligence on its acquisition of Krafty Labs, an AI-driven event engagement and experiential technology company. The transaction is expected to close on January 2, 2026, pending customary closing conditions including Canadian Securities Exchange (CSE) approval.
Krafty Labs brings an enterprise customer base, approximately $1.2 million in year-to-date 2025 revenue, and 72% gross margins. Management says the deal strengthens Nextech3D.ai's AI-first event platform and expands reach into higher-value enterprise and association customers.
Why this matters for executives and strategy
- Accretive capability: Adds enterprise-grade engagement tools that can lift average contract values and deepen multi-year relationships.
- Monetization: 72% gross margins and cross-sell potential across in-person, virtual, and hybrid events.
- Operator signal: CEO is increasing personal exposure, reinforcing confidence in execution and long-term growth.
Deal snapshot: Krafty Labs
- Status: Due diligence complete; closing targeted for January 2, 2026 (subject to CSE approval).
- Customers: Blue-chip enterprise and associations.
- Financials: ~$1.2M YTD 2025 revenue; 72% gross margins.
- Fit: Enhances Nextech3D.ai's event tech stack for enterprise engagement across formats.
CEO investment signals alignment
Evan Gappelberg, CEO of Nextech3D.ai, will invest $321,917 through an 18-month convertible note at 12% annual interest. He remains the Company's largest shareholder with 32,757,017 common shares. CEO investment is a continuing sign of commitment and alignment with shareholders as he already is the largest shareholder and owns 32 million+ shares.
- Term: 18 months; Interest: 12% per annum
- Conversion: Option to convert into 2,299,412 common shares at $0.14 per share
- Warrants: 2,299,412 warrants at $0.165; 3-year term
The transaction is a related party transaction under Multilateral Instrument 61-101 and, according to the Company, qualifies for exemptions from formal valuation and minority approval because it does not exceed 25% of market capitalization. It remains subject to CSE approval.
Strategic integration: where value can show up
- Product breadth: Krafty Labs' engagement features, combined with Nextech3D.ai's stack (including Map Dynamics and Eventdex), can support larger deployments with fewer vendor touchpoints.
- Revenue expansion: Potential to increase ACV via cross-sell and upsell into enterprise and association segments.
- Customer depth: More ways to deliver measurable engagement across in-person, virtual, and hybrid programs.
Management commentary
"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. 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
Timeline
- Due diligence: Completed
- Expected close: January 2, 2026 (subject to customary closing conditions and CSE approval)
- Post-close focus: Integration and enterprise growth
About Nextech3D.ai
Nextech3D.ai is an AI-powered technology company specializing in 3D asset generation, spatial computing, and comprehensive AI Event Solutions for virtual, hybrid, and in-person experiences. Through Map Dynamics, Eventdex, and Krafty Labs, Nextech3D.ai provides a unified platform used by global brands and large-scale programs.
Website: Nextech3D.ai
Investor Relations: investors@nextechar.com
Phone: 866-ARITIZE (274-8493)
Governance and regulatory notes
This transaction constitutes a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. For more information on MI 61-101, see the Ontario Securities Commission resource: MI 61-101.
The transaction is subject to approval of the Canadian Securities Exchange (CSE). The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Forward-looking statements
This article contains forward-looking statements under applicable securities laws, including statements about the proposed acquisition of Krafty Labs, anticipated timing, expected benefits, product integration, and growth opportunities. These statements are based on assumptions and subject to risks and uncertainties that may cause actual results to differ materially. There is no assurance the transaction will close as anticipated or at all. The Company disclaims any obligation to update forward-looking statements except as required by law.
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