NowVertical Group Inc. announced that it expects to receive CAD 15.1 million in funding. Published on 10/06/2026 at 12:50 pm EDT S&P Capital IQ NowVertical Group Inc. announced to issue 42,500,000 units at an issue price of CAD 0.12 per unit for gross proceeds of CAD 5,100,000, and 10,000 convertible debenture units at an issue price of CAD 1,000 per unit for gross proceeds of up to CAD 10,000,000; aggregate gross proceeds of CAD 15,100,000 on October 6, 2026. VRG Capital, a Toronto-based group of family offices, will form the lead investors in the Offering. Each Unit will be comprised of one Class A Subordinate Voting Share one half of one Common Share purchase warrant. Each Unit Warrant will entitle the holder to acquire one Common Share at a price of CAD 0.20 for 24 months following the Closing Date. Each Convertible Debenture Unit will be comprised of CAD 1,000 principal amount of 10% senior unsecured convertible debentures (the "Convertible Debentures") of the Company and 2,500 Common Share purchase warrants. The Convertible Debentures shall mature on the date that is 36 months following the Closing Date and shall be convertible into Common Shares, at the holders' option, at a price of $0.20 per Common Share. Each Debenture Warrant will entitle the holder to acquire one Common Share at a price of CAD 0.25 for 36 months following the Closing Date. In consideration for the Agent?s services, the Company will pay to the Agent a cash commission equal to 5.0% of the gross proceeds from the sale of the Units, except for sales to purchasers on a president?s list (the ?President?s List?) of up to CAD 1,000,000 on which the Company will pay a reduced cash commission of 2.5% of the gross proceeds received from those persons on the President?s List, all of which shall be payable upon the closing of the Offering. As additional compensation, the Company will issue to the Agent non-transferable broker warrants (the ?Broker Warrants?) equal to 7.0% of the number of Units sold except those sold to the President?s List, pursuant to the Offering. Each Broker Warrant shall be exercisable to acquire one Unit at a price of CAD 0.12 per Unit for a period of 24 months from the Closing Date. The Company shall pay to the Agent a commission equal to 5.0% of the gross proceeds from the sale of the Convertible Debenture Units. Closing of the Offering is expected to take place on or about October 15, 2026 (the "Closing Date"), and is subject to certain conditions including, but not limited to, all necessary approvals of the TSXV. All securities issued under the Offering will be subject to a hold period expiring four months and one day from the Closing Date. (C) S&P Capital IQ - 2026

NowVertical Group reported Q2 2026 revenue of $9.7 million, up 18% year-over-year from $8.2 million. The data analytics firm's gross margin improved to 50% from 47% in the prior year, while adjusted EBITDA rose 41% to $1.5 million, representing a 15% margin. The company achieved positive net income of $0.2 million in the first half of 2026, reversing a $1.3 million loss from the same period in 2025. Cash flow from operations turned positive at $1 million, a $5 million improvement from the previous year's $4 million consumption. Core data analytics solutions revenue grew 13% year-over-year, whilst Google Cloud Platform revenue surged 77% to $2.5 million. Client concentration remained strong, with 85% of Q2 revenue coming from top 30 accounts and 92% from clients with over one-year tenure.

Is NowVertical Group (TSXV:NOW) a buy? Last updated on August 18, 2026 at 5:58pm ADT Ventum Capital Markets analyst Rob Goff says NowVertical Group (NowVertical Group Stock Quote, Chart, News, Analysts, Financials TSXV:NOW) remains on track to strengthen organic growth under co-founder and interim CEO Andre Garber. In an Aug. 18 update, Goff maintained his "Buy" rating on NowVertical but lowered his target to $0.30 from $0.42. "We are maintaining our bullish outlook," Goff said. "The quarterly results were both in line with our forecasts and supportive of our outlook." Goff said the lower target reflects tougher valuations as investors wait for confirmation of the CEO role and continued organic growth. His target is based on 3.3 times his 2027 EV/EBITDA estimate. NowVertical reported Q2 revenue of $9.7-million and Adjusted EBITDA of $1.5-million, in line with Goff's estimates of $9.6-million and $1.5-million. Consensus was $9.6-million and $1.4-million. Revenue rose 18% year-over-year, while Adjusted EBITDA increased 41% from $1.0-million a year earlier. Goff said management continues to shift the business away from lower-margin reselling toward higher-value data analytics and Google-related services. Data analytics revenue rose 7% sequentially to $8.6-million, including $2.5-million of Google Cloud Platform revenue, up 10% from Q1. Revenue from NowVertical's top 30 strategic accounts grew about 24% year-over-year and represented 85% of total revenue, up from 80.7% a year earlier and 55% in 2024. NowVertical generated $1-million of operating cash flow in the first half, compared with a $4-million use of cash a year earlier. The company ended Q2 with $3.9-million of cash and net debt of 1.8 times trailing-12-month Adjusted EBITDA. Goff said acquisitions are unlikely in the near term, but the company is in a stronger position to consider higher-quality targets if organic growth continues. The analyst expects NowVertical to generate Adjusted EBITDA of $6-million on revenue of $40-million in fiscal 2026, improving to Adjusted EBITDA of $8-million on revenue of $44-million in fiscal 2027. Nick Waddell. Founder of Cantech Letter Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider. Ventum Capital Markets analyst Rob Goff has lowered his target on NowVertical Group (NowVertical Group Stock Quote, Chart, News, Analysts,... Ventum Capital Markets analyst Robb Goff cut his target on NowVertical Group (NowVertical Group Stock Quote, Chart, News, Analysts, Financials... Loading more...