02:08 PM EST, 01/02/2025 (MT Newswires) -- NowVertical Group ( NOWVF ) on Thursday entered into a debt settlement agreement with the vendors or former owners of Acrotrend Solutions, which include NowVertical's ( NOWVF ) Chief Executive Officer Sandeep Mendiratta, and that provide the global data and analytics company with cash savings going forward.

According to a statement, the vendors agreed to settle an aggregate entitlement of US$815,000, from the $1.055 million owing to the vendors as of Dec. 31, 2024, through the issuance of Class A subordinate voting shares.

Shares of the company were last seen up $0.045 at $0.415 on the TSX Venture Exchange.

Subject to receipt of TSX Venture Exchange approval, the company will issue an aggregate of more than 3.5 million subordinate voting shares to the vendors at C$0.33 per share, representing an about 11% discount to the last closing price of the subordinate shares on the TSXV. The vendors have also agreed to defer the remaining US$240,000 of cash payments that became owing to the vendors on Jan. 1, 2025, spreading it into 12 equal monthly installments of US$20,000 throughout 2025.

NowVertical ( NOWVF ) added that the only remaining obligations to the vendors will be the payment of the US$240,000, following the issuance of the settlement shares.

The company and its Chief Development Officer Andre Garber, in a separate agreement, entered into a debt settlement agreement to settle an outstanding debt of US$151,200 related to a 2021 cash bonus, which will be settled through the issuance of 659,278 subordinate voting shares at the settlement price. "These agreements, combined with the previously announced LATAM market unit debt-to-equity conversion, deliver total cash outflow savings of about US$1.6 million, significantly supporting NowVertical's ( NOWVF ) organic growth strategy," the company said in a statement.

"The growth potential of this business has allowed us to strengthen our balance sheet and further align our passionate management team with fellow shareholders as we progress toward achieving our US$50 million revenue run rate and 20% best-in-class EBITDA margin financial goals," said Mendiratta. "With a substantial reduction in our cash outflows in 2025, we can now focus our energies on accelerating organic growth earlier than anticipated."

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