NowVertical Secures Up to $26 Million USD in Financing with HSBC to Fuel Growth

Core Viewpoint - NowVertical Group Inc. has entered into a senior secured facilities agreement with HSBC UK Bank, providing access to credit facilities of up to $26 million, which will significantly lower the company's cost of capital and enhance access to non-dilutive funding [1][2][3]. Group 1: Financing Details - The Facilities Agreement allows NowVertical UK Ltd. and NowVertical Group, Inc. to access credit facilities of up to $18 million, with the potential to increase this by an additional $8 million upon HSBC's approval, totaling up to $26 million [2]. - The financing includes a $6 million term loan, amortizing over 5 years, and a $12 million revolving credit facility with an initial 3-year term, extendable for up to 24 months [3][4]. - The interest rates on the Facilities range from 2.25% to 3.75% for the term loan and from 1.75% to 3.25% for the revolving credit facility, with an initial blended interest rate of approximately 7.25% [4]. Group 2: Strategic Implications - The financing agreement is described as transformational, simplifying the capital structure by consolidating existing debt into a single long-term facility, which will provide immediate access to capital for organic growth and strategic acquisitions [3]. - The company plans to use a portion of the funds to repay existing debt, thereby preserving cash and reducing the overall cost of capital [3][5]. - The agreement reflects institutional confidence in NowVertical's vision and growth strategy, positioning the company for scalable and strategic growth [3][6]. Group 3: Company Overview - NowVertical is a global data and analytics company that helps clients transform data into business value using AI, offering a comprehensive suite of solutions and services [8]. - The company is focused on organic growth and strategic acquisitions, aiming to optimize decision-making and improve operational efficiency for its clients [8].