On January 30, 2024, Nowvertical Group Inc. announced that it has obtained an injunction from the Ontario Superior Court of Justice against Daren Trousdell, a shareholder, and former director and officer of the company. Among other things, the injunction prohibits Trousdell, and any other person acting jointly or in concert with him, from directly or indirectly and in any way: acquiring any securities of the company; selling or agreeing to sell any securities of the company except to the extent that the aggregate consideration received from such sales does not exceed more than $125,000 (U.S.) per quarter; engaging in any short sale of the company's shares; soliciting or participating in the solicitation of any proxies; seeking to advise or influence any person with respect to the voting of any securities of the company; seeking representation on the company's board of directors; Seeking to control or influence the board, management or policies of the company; interfering in any way with any contractual relationship or other business of the company; engaging in any discussions or advising, assisting or encouraging any other person in connection with the foregoing; and corresponding with other company shareholders in respect of any of the foregoing. Accordingly, any breach of the above will result in a breach of the court's judgment.

The Company stated that it will proceed with private and confidential arbitration with Trousdell, in which it seeks remedies for Trousdell's recent conduct. The injunction will remain in place until the arbitrator renders their decision. Additionally, as Trousdell disclosed in his press release of Jan.

18, 2024, he is contractually required to vote all of his shares, howsoever controlled, in favor of any resolution put to a shareholder vote that is recommended by the company's management or board of directors until at least Dec. 31, 2024. Furthermore, the Company stated that it looks forward to putting the distraction caused by recent events behind it and will continue to focus on generating value for all stakeholders.