Elevates Business Unit Leadership and Moves to Align All Key Stakeholders Across the Company
Top-Level Reorganization to Drive Tangible Integration Benefits, Reposition the Company, and Accelerate Global Growth
To support
Over the last three years,
However, over the past six months, NowVertical’s board of directors (the “Board”) determined that the Company had not maximized the expected benefit from the integration of the Company’s acquisitions, nor was it effectively positioning those business units or their respective leadership teams for success.
The Board also determined that the current course of growth, and the Company’s spending across the enterprise, was unsustainable without substantial dilution to shareholders on potentially punitive terms amid poor market conditions.
In order to preserve shareholder value and put
- Empowering Business Leadership: Founders and leaders of acquired business units have assumed key leadership roles within
NowVertical . These founders and leaders, distinguished experts in the data analytics space, bring not only a wealth of operational expertise but also possess long-term institutional knowledge critical for navigating the complexities of the evolving industry landscape. Integration efforts will continue to elevate key performing leaders withinNowVertical . - Aligning All Key Stakeholders: Commencing the renegotiation of commitments with key business unit stakeholders to ensure cash is paid only when available, and to create an environment where all individual stakeholders are working towards the same metrics that are relevant to the Company as a whole and not just the individual business units.
- Cost Efficiencies: Initiatives to enhance financial and operational efficiency by minimizing redundancy, fostering synergies across individual business units, and reducing corporate expenses, were accelerated in Q3. These efforts, which will continue, resulted in a substantial reduction of operating cash burn from
($3.6) million USD in Q1 2023 to just($0.3) million USD in Q3 2023.
Non-GAAP net cash flow from operations:
Three months ended | |||||||
Revenue | $ | 16,512,040 | $ | 13,622,035 | |||
Operating expenses | (16,812,245 | ) | (17,224,188 | ) | |||
Net cash flow from operations | $ | (300,205 | ) | $ | (3,602,153 | ) |
- Integration, Simplification and Execution: Focus on driving the integration of NowVertical’s existing business units, including across similar markets, targeting and measuring the Company’s greatest market opportunities. Deploy an easy-to-understand framework to engage with customers and prospects. Unify the Company’s global design strategy to create clarity and efficiency in NowVertical’s offering. Execute on strategic account growth opportunities. Drive engagement and profitability through long-term recurring revenue.
- Board Refreshment and Enhancement: This past week the Board was pleased to appoint Mr.
David Charron , CFO ofTiny Ltd. , a technology holding company with a strategy of acquiring majority stakes in businesses; and Mr.Chris Ford , President ofIntelliware Development , a consulting and technology delivery organization focused on delivering business impact through technology, and the former CEO of Capco Canada, a leading business and technology professional services firm specializing in the financial services domain. Earlier this year, the Board elevated directorElaine Kunda , Founder and Managing Partner atDisruption Ventures , a leading Canadian early-stage VC firm to the position of Board chair; and welcomedAndre Garber , NowVertical’s co-founder and Chief Development Officer, to the Board. Each of these individuals brings a unique set of skills, experience, expertise, and shareholder-focused perspective to the Board. - Appointment of New Auditor: In
October 2023 , the Board was pleased to appointErnst & Young LLP (“EY”) as the Company’s auditor. In making its selection, the audit committee of the Board, among other factors, considered the experience of audit firms’ in working with technology and M&A-led enterprises with multiple business units.
“We are very pleased to welcome
“The past year has been an active one for the Board and management team, we had to make difficult but necessary decisions to preserve shareholder value and put the Company back on track for growth. On behalf of the
“I am excited about the opportunity ahead of
The co-founder of
Investor Webinar:
NOW invites shareholders, analysts, investors, media representatives, and other stakeholders to attend a webinar where
Webinar Registration
Date:
Time:
Register here: https://bit.ly/NOW-investor-update
A recording of the webinar and supporting materials will be made available in the investor’s section of the company’s website at https://nowvertical.com/news-and-media
About
Neither the
For further information, please contact:
IR@nowvertical.com
glen.nelson@nowvertical.com
t: (403) 763-9797
Cautionary Statement
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: information regarding the integration of the Company’s business units, the benefits associated with integration, the marketability of the Company’s business and the ability of the Company to meet client needs and expectations, the ability of the Company to renegotiate payments associated with the Company’s prior acquisitions, the benefits of empowering the Company’s business leaders, the alignment of key stakeholder interests, the ability of the Company to continue to achieve operational efficiencies and cost-reductions, the ability of the Company to execute on its business plan and to drive engagement and profitability, the benefits associated with the appointment of EY as the Company’s auditor, and the Company’s goals, strategies and growth plans. 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: direct and indirect material adverse effects from the COVID-19 pandemic; 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; 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.ca, including the Company’s managements discussion and analysis for the ear ended
Cautionary Note Regarding Non-IFRS Measures
This news release refers to certain financial performance measures, including “operating cash burn”, that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (termed "non-IFRS measures"). Non-IFRS measures are used by management to assess the financial and operational performance of
Source:
2024 GlobeNewswire, Inc., source