NowVertical CEO Takes Equity Bonus in Lieu of Cash, Underscoring Shareholder Alignment

NowVertical Group Inc.'s CEO, Sandeep Mendiratta, has taken an equity bonus in lieu of cash, further aligning his interests with those of the company's shareholders. This move comes as the company continues to transform its business for profitable and sustainable organic growth. The equity bonus structure provides Mendiratta with a significant ownership stake in the company, demonstrating his confidence in its growth prospects and commitment to its success.

The equity bonus structure aligns with Mendiratta's long-term incentives by providing him with a direct financial interest in the company's success. By owning approximately ten percent of the issued and outstanding voting shares of NOW, the CEO has a vested interest in driving long-term value for the company and its shareholders. This alignment of interests encourages Mendiratta to make decisions that drive long-term value for the company and its stakeholders.

This decision also has a significant impact on NowVertical Group's capital structure and liquidity. By converting US$815,000 of debt into 3,553,646 Class A subordinate voting shares at C$0.33 per share, the company reduces its cash outflows in 2025 by approximately US$970,000. This reduction in cash outflows improves the company's liquidity position, allowing it to focus on accelerating organic growth earlier than anticipated.

Additionally, the agreement with Andre Garber to settle an outstanding debt of US$151,200 through the issuance of 659,278 subordinate voting shares further enhances the company's liquidity. Combined with the previously announced LATAM market unit debt-to-equity conversion, these agreements deliver total cash outflow savings of approximately US$1.6 million, which significantly supports the company's organic growth strategy.

Mendiratta's decision to take an equity bonus in lieu of cash reflects his confidence in the company's future prospects. By converting debt to equity, the CEO is essentially betting on the company's success, as the value of the shares will increase if the company performs well. This move also shows a commitment to the long-term success of the company, as Mendiratta is now a significant shareholder and will benefit directly from the company's growth.

In conclusion, NowVertical Group's CEO, Sandeep Mendiratta, has taken an equity bonus in lieu of cash, further aligning his interests with those of the company's shareholders. This decision has a significant impact on the company's capital structure and liquidity, allowing it to focus on accelerating organic growth. Mendiratta's confidence in the company's future prospects is evident in his decision to convert debt to equity, demonstrating his commitment to the company's long-term success.