January 15, 2021 – GATINEAU, QUÉBEC AND TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or the “Company”) (TSXV: CTS) (FSE:0ZB) (OTCQX:CTSDF) is pleased to announce the closing of its previously announced offering of common shares (the “Offering”). The Offering consisted of 17,825,000 common shares of the Company (“Offered Shares”) at a price of $4.85 per Offered Share for gross proceeds of $86,451,250, which includes the full exercise of the over-allotment option by the underwriters, before deducting the underwriters’ fees and estimated offering expenses.
Canaccord Genuity Corp. and Echelon Wealth Partners Inc. led the syndicate of underwriters for the Offering, which included Desjardins Capital Markets, Eight Capital, Raymond James Ltd., Laurentian Bank Securities Inc., Paradigm Capital Inc. and Scotiabank. Converge intends to use the net proceeds from the Offering for acquisitions, working capital and other general corporate purposes.
The Offering was conducted in each of the provinces of Canada by way of a prospectus supplement dated January 7, 2021 to the Company’s short form base shelf prospectus dated July 8, 2019 (the “Prospectus Supplement”) and elsewhere on a private placement basis. The Prospectus Supplement was filed with the securities regulatory authorities in Canada on January 7, 2021, and is available on SEDAR under the Company’s profile at www.sedar.com.
The Offered Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, the Offered Shares may not be offered or sold within the United States, its territories or possessions, any state of the United States or the District of Columbia (collectively, the “United States”) except in transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Offered Shares within the United States.
About Converge Technology Solutions Corp. is a North American software-enabled, Hybrid IT solution provider focused on delivering industry-leading solutions and services. Converge’s regional sales and services organizations deliver advanced analytics, cloud, cybersecurity, and managed services offerings to clients across various industries. The Company supports these solutions with talent expertise and digital infrastructure offerings across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public
and private sectors. For more information, visit convergetp.com.
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Converge Technology Solutions Corp.
This press release contains certain “forward‐looking information” and “forward‐looking statements” (collectively, “forward‐looking statements”) within the meaning of applicable Canadian securities legislation regarding Converge and its business. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or intends” or variations of such words and phrases or stating that certain actions, events or results “may”
or “could, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward‐looking statements. Forward‐looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward‐looking statements. These forward looking statements include, but are not limited to, statements relating to the intended use of the net proceeds of the Offering, the execution of Converge’s growth strategy and timing and completion of acquisitions. Except as required by law, Converge assumes no obligation to update the forward‐looking statements of beliefs, opinions, projections, or other factors, should they change. The reader is cautioned not to place undue reliance on forward‐looking statements. For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s annual information form, which is available on SEDAR under the Company’s profile at www.sedar.com, and the consolidated financial statements of the Company for the years ended December 31, 2019 and 2018, together with the corresponding Management’s Discussion and Analysis for additional risk factors described under “Risks and Uncertainties”. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.