NowVertical CEO Takes Equity Bonus in Lieu of Cash, Underscoring Shareholder Alignment
Rhea-AI Summary
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.
Positive
- CEO opts for equity-based compensation over cash, demonstrating confidence in company's future
- Management interests further aligned with shareholders through RSU-based compensation
- Company reports improved organic growth and stronger balance sheet in 2024
Negative
- Potential future dilution from 750,000 RSUs upon vesting
Toronto, Ontario--(Newsfile Corp. - January 13, 2025) - NowVertical Group Inc. (TSXV: NOW) ("NowVertical" or the "Company"), a leading data analytics and AI solutions provider, is pleased to announce that Sandeep Mendiratta, the Chief Executive Officer and a Director of the Company, has elected to receive his annual bonus in the form of restricted share units in the capital of the Company ("RSU").
"Sandeep has positively impacted the business, improving all aspects from organic growth, strengthening the Company's balance sheet, and leading the business through a transformational 2024," said Elaine Kunda, NowVertical's Board Chair. "NowVertical is well positioned to size organic growth opportunities ahead thanks to Sandeep's focused leadership, vision, and continued dedication."
In lieu of a cash bonus, Mr. Mendiratta has elected to receive an aggregate of 750,000 RSUs pursuant to the Company's omnibus incentive compensation plan (the "Plan"). The grant is intended to appropriately reward past and ongoing contributions and to incentivize contributions to NOW's success in the future. The grant is part of a broader strategy by NOW to continue to align its management team with shareholder interests.
In accordance with the terms of the Plan, the RSUs will vest on the first anniversary of the date of grant. Upon vesting, each RSU will entitle Mr. Mendiratta to receive one (1) Class A subordinate voting share in the capital of the Company (each a "Share") or, subject to the determination of the Company, a cash amount equivalent to the value of one (1) Share.
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
IR@nowvertical.com
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 ability of the Company to, the approval of the TSXV and the issuance of RSUs, the alignment of the Company's leadership and shareholders, 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, certain of which are unknown. 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/236935
FAQ
How many RSUs did NowVertical's CEO receive instead of cash bonus?
When will NowVertical CEO's RSUs vest?
What options does NowVertical's CEO have when RSUs vest?
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