NowVertical closes $3.63M tranche of larger placement, reshuffles board
What's the deal? NowVertical Group, a Toronto-based AI data solutions company, has closed the first tranche of a brokered private placement, raising US$3.74M (≈$3.63 million) from the teraz fund. The share-and-warrant tranche is part of a larger offering targeting up to $15.1 million.
Why now? The remaining $10 million is planned as 10% senior unsecured convertible debentures, expected to close in the coming days. Clarus SecuritiesDealroom has a profile for this one. Try Dealroom → is acting as sole agent and bookrunner.
What's the endgame? The capital supports growth rather than a turnaround. First-half 2026 revenue rose 4% to $19.4 million, with positive operating cash flow and net income, while Q2 adjusted EBITDA climbed 41% year over year to $1.5 million.
Who's running it? Chief executive officer and co-founder Andre Garber joins the board, and J.R. Kingsley Ward becomes executive chair. Garber, a lawyer who has led the company's M&A programs since founding, became interim CEO in June 2026. David Charron is departing the board to focus on executive duties.
Ward brings over 30 years of private equity experience and chairs DATA Communications Management Corp. "Kingsley's deep capital markets expertise and decades of experience structuring and monetizing investments will be of great use to the Company as we execute our growth strategy," said Elaine Kunda, chair of the board.
What could go wrong? The convertible debentures carry a 10% interest cost and potential dilution, making the financing terms worth watching even as operations improve.
The signal: The round sits in the 32nd percentile by size, a modest raise. For NowVertical, it signals a shift toward funding expansion from a strengthening base, while concentrating leadership under a founder-CEO and a seasoned capital markets chair.
Read more: stockwatch.com
Image credit: jurvetson
