NowVertical's LATAM Leadership Invests in Future Growth Through Debt-to-Equity Conversion
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) ha stipulato un accordo di pagamento del debito con i precedenti proprietari di CoreBI, trasformando 1,25 milioni di dollari di debito in capitale attraverso l'emissione di 5.432.954 azioni di Classe A a 0,33 CAD per azione. L'accordo riduce i flussi di cassa nel 2025 di 770.000 dollari, abbassando le passività differite da 1,1 milioni a 330.000 dollari.
L'accordo comprende 650.000 dollari di passività da earn-out e 600.000 dollari di passività da pagamento differito. Le azioni emesse saranno soggette a un periodo di blocco legale di quattro mesi e a un blocco contrattuale di 36 mesi con termini di rilascio graduale. I precedenti proprietari, ora parte del team di leadership di CoreBI che gestisce le operazioni in LATAM, si sono impegnati a supportare le raccomandazioni del consiglio per le elezioni dei membri del consiglio fino a gennaio 2027.
NowVertical Group (TSXV: NOW) ha entrado en un acuerdo de liquidación de deuda con los antiguos propietarios de CoreBI, convirtiendo 1,25 millones de dólares de deuda en capital a través de la emisión de 5.432.954 acciones de Clase A a 0,33 CAD por acción. El acuerdo reduce los flujos de efectivo de 2025 en 770.000 dólares, disminuyendo las obligaciones diferidas de 1,1 millones a 330.000 dólares.
La liquidación incluye 650.000 dólares en obligaciones de earn-out y 600.000 dólares en obligaciones de pago diferido. Las acciones emitidas estarán sujetas a un periodo de retención legal de cuatro meses y a un bloqueo contractual de 36 meses con términos de liberación gradual. Los antiguos propietarios, ahora parte del equipo de liderazgo de CoreBI que gestiona las operaciones en LATAM, se han comprometido a apoyar las recomendaciones de la junta para las elecciones de directores hasta enero de 2027.
NowVertical Group (TSXV: NOW)는 CoreBI의 이전 소유자와 채무 조정 계약을 체결하여 125만 달러의 채무를 5432954개의 A주식을 주당 0.33 캐나다 달러로 발행하여 자본으로 전환했습니다. 이 계약은 2025년 현금 유출을 77만 달러 줄이고, 연기된 채무를 110만 달러에서 33만 달러로 낮춥니다.
이 조정에는 65만 달러의 성과 기반 채무와 60만 달러의 연기된 지불 채무가 포함됩니다. 발행된 주식은 4개월의 법적 보유 기간과 점진적 해제 조건이 있는 36개월의 계약적 잠금을 받게 됩니다. 이전 소유자들은 현재 LATAM 운영을 관리하는 CoreBI의 리더십 팀의 일원이 되었으며, 2027년 1월까지 이사 선출에 대한 이사회 권장 사항을 지원하겠다고 약속했습니다.
NowVertical Group (TSXV: NOW) a conclu un accord de règlement de dette avec les anciens propriétaires de CoreBI, convertissant 1,25 million de dollars de dette en capital par l'émission de 5.432.954 actions de classe A à 0,33 CAD par action. Cet accord réduit les sorties de trésorerie de 2025 de 770 000 dollars, diminuant les passifs différés de 1,1 million à 330 000 dollars.
Le règlement inclut 650 000 dollars de passifs de earn-out et 600 000 dollars de passifs de paiement différé. Les actions émises seront soumises à une période de blocage légale de quatre mois et à un verrouillage contractuel de 36 mois avec des conditions de libération progressive. Les anciens propriétaires, maintenant membres de l'équipe de direction de CoreBI qui gère les opérations en LATAM, se sont engagés à soutenir les recommandations du conseil pour les élections des administrateurs jusqu'en janvier 2027.
NowVertical Group (TSXV: NOW) hat eine Schuldenvergleichsvereinbarung mit den ehemaligen Eigentümern von CoreBI getroffen, die 1,25 Millionen US-Dollar Schulden in Eigenkapital umwandelt, indem 5.432.954 Class-A-Aktien zu je 0,33 CAD ausgegeben werden. Die Vereinbarung reduziert die Cash-Abflüsse für 2025 um 770.000 US-Dollar und senkt die aufgeschobenen Verbindlichkeiten von 1,1 Millionen auf 330.000 US-Dollar.
Der Vergleich umfasst 650.000 US-Dollar an Earn-Out-Verbindlichkeiten und 600.000 US-Dollar an aufgeschobenen Zahlungs- verbindlichkeiten. Die ausgegebenen Aktien unterliegen einer viermonatigen gesetzlichen Haltperiode sowie einem 36-monatigen vertraglichen Lock-up mit schrittweisen Freigabe- merkmalen. Die ehemaligen Eigentümer, die nun das Führungsteam von CoreBI sind und die LATAM-Operationen leiten, haben sich verpflichtet, die Empfehlungen des Vorstands für die Wahl der Direktoren bis Januar 2027 zu unterstützen.
- Reduction of US$770,000 in 2025 cash outflows
- Conversion of US$1.25M debt to equity strengthens balance sheet
- 36-month lock-up period demonstrates management's long-term commitment
- Alignment of LATAM leadership interests with shareholders
- 5,432,954 new shares issuance causing dilution
- Remaining deferred liabilities of US$535,000 through Q1 2026
- NowVertical to realize cash savings of US
$770 K in 2025 - NowVertical's LATAM leadership aligned with shareholder value through debt settlement agreement
Toronto, Ontario--(Newsfile Corp. - December 23, 2024) - NowVertical Group Inc. (TSXV: NOW) ("NowVertical" or the "Company"), a leading data analytics and AI solutions company, announces that it has entered into a debt settlement agreement (the "Agreement") with the former owners of CoreBI S.A. and CoreBI S.A.S. (the "Vendors") whereby the Vendors agreed to defer certain payments due in 2025 and settle an aggregate entitlement of US
Subject to receipt of TSX Venture Exchange approval, the Company will issue an aggregate of 5,432,954 Class A subordinate voting shares in the capital of the Company at a price of C
As a result of the Agreement, the deferred liabilities due through 2025 have also been reduced from US
"This strategic investment by the LATAM leadership team delivers a US
Upon issuance, the Settlement Shares will be subject to:
- A statutory hold period of four months plus a day from the issuance date, as per applicable securities regulations.
- A contractual lock-up for thirty-six (36) months from the issuance date, with
20% of the Settlement Shares being released after twelve (12) months, and20% released every six (6) months thereafter. - If a Vendor is terminated by the Company during the lock-up period while the deferred liabilities remain outstanding, the lock-up will expire six (6) months from the termination date for any remaining shares.
In addition, the Vendors have agreed to vote in favour of board recommendations for director elections until January 1, 2027 but retain the right to abstain from voting during this period.
About NowVertical Group Inc.
The Company is a global data and analytics company which helps clients transform data into tangible business value with AI, fast. Offering a comprehensive suite of solutions and services the Company enables clients to quickly harness the full potential of their data, driving measurable outcomes and accelerating potential return on investment. Enterprises optimize decision-making, improve operational efficiency, and unlock long-term value from their data using the Company's AI-Infused first party and third-party technologies. NowVertical is growing organically and through strategic acquisitions. For further details about NowVertical, please visit www.nowvertical.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Andre Garber, CDO
Nikhil Thadani, Investor Relations and Communications
nik@sophiccapital.com
t: (289) 667-1977
Cautionary note regarding Forward-Looking Statements
This news release contains forward-looking information and forward-looking information within the meaning of applicable Canadian securities laws (together "forward-looking statements"), including, without limitation: statements pertaining to the approval of the TSX Venture Exchange and the issuance of the Settlement Shares and the associated results on NowVertical's business, finances and operations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: adverse market conditions; risks inherent in the data analytics and artificial intelligence sectors in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions or dispositions; that market competition may affect the business, results and financial condition of the Company and other risk factors identified in documents filed by the Company under its profile at www.sedarplus.com, including the Company's management's discussion and analysis for the year ended December 31, 2023. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234935
FAQ
How much debt is NowVertical (NOWVF) converting to equity in the December 2023 agreement?
What are the lock-up terms for NowVertical's (NOWVF) Settlement Shares?
How much will NowVertical (NOWVF) save in cash outflows for 2025?
What are NowVertical's (NOWVF) remaining deferred liabilities after the debt settlement?
What is NowVertical's (NOWVF) revenue run rate target mentioned in the announcement?
