Nowvertical Grou - NOWVF STOCK NEWS

NowVertical Group (TSXV: NOW) announced significant open market share purchases by its executive management team, totaling approximately 1.06 million Class A subordinate voting shares. These purchases, made following Q3 2024 results, were executed by CEO Sandeep Mendiratta, EVP Shailesh Mallya, CDO Andre Garber, and interim CFO Christine Nelson, increasing management's pro forma ownership to approximately 27%.

The purchases align with the company's near-term goals of achieving US$50 million in annual revenue run-rate and 20% EBITDA margin. Additionally, NowVertical announced new executive appointments following the completion of integration milestones, including Santiago Trógolo as EVP LATAM, Shailesh Mallya as EVP of Solutions and Services, Mostafa Hashem as EVP of Product & Tech, and Pankaj Ghag as EVP of Program Delivery and Operations.

NowVertical Group (TSXV: NOW) announced that CEO Sandeep Mendiratta has chosen to receive his annual bonus in the form of 750,000 restricted share units (RSUs) instead of cash compensation. The RSUs, granted under the company's omnibus incentive compensation plan, will vest on the first anniversary of the grant date. Upon vesting, each RSU will convert to one Class A subordinate voting share or cash equivalent.

Board Chair Elaine Kunda praised Mendiratta's leadership, highlighting his positive impact on organic growth and balance sheet strengthening throughout a transformational 2024. This decision aligns with NOW's broader strategy to align management interests with those of shareholders.

NowVertical Group has announced debt settlement agreements that will result in significant cash savings of approximately US$970,000. The company will convert US$815,000 of debt owed to former Acrotrend Solutions owners, including CEO Sandeep Mendiratta, into 3,553,646 Class A subordinate voting shares at C$0.33 per share. The remaining US$240,000 will be deferred into 12 monthly payments throughout 2025.

Additionally, a separate agreement with Chief Development Officer Andre Garber will convert US$151,200 of debt into 659,278 subordinate voting shares. Combined with previously announced LATAM market unit debt-to-equity conversion, these agreements deliver total cash outflow savings of approximately US$1.6 million, supporting the company's organic growth strategy toward achieving US$50 million revenue run rate and 20% EBITDA margin goals.

NowVertical Group (TSXV: NOW) has entered into a debt settlement agreement with former owners of CoreBI, converting US$1.25 million of debt into equity through the issuance of 5,432,954 Class A shares at C$0.33 per share. The agreement reduces 2025 cash outflows by US$770,000, lowering deferred liabilities from US$1.1M to US$330,000.

The settlement includes US$650,000 of earn-out liabilities and US$600,000 of deferred payment liabilities. The issued shares will be subject to a four-month statutory hold period and a 36-month contractual lock-up with gradual release terms. The former owners, now CoreBI's leadership team managing LATAM operations, have committed to support board recommendations for director elections until January 2027.

NowVertical Group (TSXV: NOW) has announced the release of a new AI Financial Agent as part of its NowHub-Finance solution update. The platform, which already serves half a dozen clients in Pharmaceuticals, Retail, and Hospitality sectors across the U.K. and Middle East, connects to over 300 data sources for automated financial reporting.

The new AI Financial Agent, powered by Microsoft Azure OpenAI, enables natural language interactions with financial data, allowing users to analyze scenarios such as potential Travel and Expense (T&E) policy impacts on cash savings. This feature is immediately available to existing users at no additional cost as part of the latest platform update.

NowVertical Group announces the launch of its Microsoft Center of Excellence (COE) as part of the Microsoft AI Cloud Partner Program. The COE, comprising over 50 Microsoft specialists across India, the UK, and LATAM, aims to meet enterprises' demand for Microsoft Azure-based data solutions. The initiative leverages NOW's expertise in AI-powered data transformation, with a proven track record of successful projects including cost savings of US$3 million in 57 days for a European telecom company and 30% improvement in marketing campaign conversion for a Latin American newspaper. The company plans to launch AI-powered solutions in the Azure Marketplace to expand its presence in North America, EMEA, and LATAM.

NowVertical Group reported Q3 2024 financial results with revenue of $10.7 million, showing a 9% year-over-year growth excluding recent divestitures of Allegient and Seafront. On a reported basis, revenue declined 29% Y/Y. Net Income reached $0.6 million, up 381% Y/Y excluding divestitures, while Adjusted EBITDA was $2.0 million. The company achieved significant administrative expense reduction of 38% to $3.9 million and improved operational income by 17% to $1.3 million. The company successfully reduced acquisition-related liabilities by approximately $5.4 million through renegotiations and is progressing toward its goal of $10 million annual EBITDA with $50 million revenue target.

NowVertical Group (TSXV: NOW) has scheduled its Q3 2024 earnings release for Thursday, November 14, 2024, before market open. The company will host a webinar at 10:00 AM ET the same day to discuss financial results and business outlook. CEO Sandeep Mendiratta, Interim CFO Christine Nelson, and CDO Andre Garber will participate in the presentation, which will include a live Q&A session. A recording and supporting materials will be available on the company's investor relations website.

NowVertical Group has launched a new Data Risk Mitigation solution with a unique risk guarantee to help enterprises identify and control data risks. The solution combines NowPrivacy technology with Data Governance and AI services, addressing the growing concern of data breaches, which now cost an average of US$4.88 million globally. The solution has already shown success, achieving a 37% reduction in risk costs for a global consumer healthcare client. The company is backing its solution with a market-first client guarantee, ensuring significant risk identification and quantifiable risk reduction.