TORONTO, Aug. 9, 2023
/CNW/ - Converge Technology Solutions Corp. ("Converge" or
the "Company") (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF)
announces that the Toronto Stock Exchange (the "TSX") has
approved the Company's Notice of Intention to Make a Normal Course
Issuer Bid (the "NCIB"). Pursuant to the NCIB, Converge may
purchase for cancellation up to an aggregate of
19,427,276 common shares (the "Common Shares")
representing approximately 10% of Converge's public float of Common
Shares as at July 28, 2023. The
NCIB will commence on August 11, 2023
and terminate one year after its commencement, or earlier if the
maximum number of Common Shares under the NCIB have been purchased
or the NCIB is terminated at the option of the Company.
The Company and its Board of Directors believes that, from time
to time, the market prices of the Common Shares may not fully
reflect the underlying value of the Company's business and its
future business prospects and accordingly, the NCIB is in the best
interests of the Company and constitutes a desirable use of its
funds.
Purchases of Common Shares under the NCIB will be made on the
open market through the facilities of the TSX and/or permitted
alternative Canadian trading systems. The price paid for the Common
Shares will be at prevailing market prices in accordance with the
applicable rules and policies of the TSX and applicable securities
laws. All Common Shares acquired by the Company under the NCIB will
be cancelled.
Additionally, the Company intends to enter into an automatic
share purchase plan agreement (the "ASPP") with Canaccord
Genuity Corp. ("Canaccord" or "the Broker") to
facilitate the repurchase of Common Shares. Pursuant to the ASPP,
Canaccord may purchase Common Shares under the NCIB at times when
the Company would ordinarily not be active in the market due to its
own internal trading blackout periods, insider trading rules or
otherwise. Trading limits and other parameters for automatic
purchases of the Common Shares under the ASPP will be determined
between the Company and the Broker in accordance with the rules and
policies of the TSX, applicable securities laws and the terms of
the ASPP. Outside of these blackout periods, the Company may
purchase Common Shares at its discretion under the NCIB.
Under the NCIB, other than purchases made under a block purchase
exemption pursuant to the rules and policies of the TSX, Converge
may not purchase more than 257,059 of the issued and
outstanding Common Shares on the TSX during any trading day, which
represents approximately 25% of the average daily trading volume of
1,028,239 Common Shares of the Company for the most recently
completed six calendar months preceding July
31, 2023.
Under its previous normal course issuer bid approved by the TSX
on August 8, 2022, the number of
Common Shares that could be repurchased for cancellation was
10,744,818 Common Shares. Converge completed the purchase for
cancellation through the facilities of the TSX, and through
alternative trading systems, of 10,744,818 Common Shares at a
weighted average price of $5.05 per Common Share.
About Converge
Converge Technology Solutions Corp. is a services-led,
software-enabled, IT & Cloud Solutions provider focused on
delivering industry-leading solutions. Converge's global approach
delivers advanced analytics, application modernization, cloud
platforms, cybersecurity, digital infrastructure, and digital
workplace offerings to clients across various industries. The
Company supports these solutions with advisory, implementation, and
managed services expertise 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.
Forward-Looking
Information
Certain information contained in this press release may
constitute forward-looking information under applicable securities
laws, including statements related to the timing and amount of
potential purchases and the cancellation of Common Shares under the
NCIB and the ASPP. Forward-looking statements are necessarily based
upon various assumptions that, while the Company considers
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. 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 filings available on SEDAR under the Company's
profile at www.sedar.com including its most recent Annual
Information Form, its Management Discussion and Analysis and its
Annual and Quarterly Financial Statements.
The TSX has not reviewed the information provided under this
press release and does not accept responsibility for the adequacy
or accuracy of this release.
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SOURCE Converge Technology Solutions Corp.