NowVertical Group Announces Delay in Annual Filings

TORONTO, April 29, 2024 (GLOBE NEWSWIRE) -- NowVertical Group Inc. (TSXV: NOW) (OTCQB: NOWVF), (“NOW” or the “Company”), announces a delay in the filing of its audited annual financial statements, management's discussion and analysis and related chief executive officer (CEO) and chief financial officer (CFO) certifications (collectively, the "Annual Filings") for the financial year ended December 31, 2023, which were due today under Canadian securities law requirements.

The reason for the delay is due to the Company’s auditors, Ernst & Young LLP (“EY”), requiring additional time to complete their remaining audit and quality procedures. The Company notes that there have been no disagreements between the Company and the auditor regarding any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures. The Company’s management, together with its audit committee, has been working with and will continue to work with its auditors to provide all necessary information and complete the Annual Filings. EY has committed to concluding its procedures by no later than May 7, 2024.

As a result of the delay, the Company expects to be noted in default by applicable securities regulatory authorities in Canada and that the Ontario Securities Commission, as principal regulator, will issue a 'failure-to-file' cease trade order ("CTO") in accordance with the principles and guidance set out in National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions of the Canadian Securities Administrators. The CTO is expected to prohibit any trading in securities of the Company for so long as it remains in effect, in all Canadian jurisdictions in which the Company is a reporting issuer as well as certain other Canadian jurisdictions based on the provisions of local securities legislation and is anticipated to remain in effect until after the Annual Filings have been filed. The CTO is also expected to result in a suspension of the Company's shares from trading on the TSX Venture Exchange ("TSXV"), which will continue until the CTO is revoked and all TSXV requirements are satisfied.