Converge Technology Solutions Corp. Announces Closing of its Previously Announced Public Offering

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VANCOUVER, BC and TORONTO, July 31, 2020 /CNW/ - Converge Technology Solutions Corp. ("Converge" or the "Company") CTS 0ZB CTSDF announced today the closing of its previously announced underwritten public offering (the "Offering"). The Offering consisted of 10,800,000 common shares of the Company (the "Offered Shares"). The Offered Shares were offered at a price to the public of $1.62 per Offered Share for gross proceeds to the Company of approximately $17.5 million, before deducting the underwriters' fees and estimated offering expenses. The Company also granted the underwriters an option, exercisable at any time, in whole or in part, until the date that is 30 days following closing to purchase, at the offering price, 1,620,000 additional common shares to cover over-allotments, if any, and for market stabilization purposes. Canaccord Genuity Corp. and Desjardins Capital Markets led the syndicate of underwriters for the Offering, which included Echelon Wealth Partners Inc., Eight Capital, Paradigm Capital Inc. and Raymond James Ltd. 

Converge intends to use the net proceeds from the Offering for repayment of a portion of its debt obligations, 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 July 27, 2020 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 each of the provinces of Canada on July 27, 2020 and is available on SEDAR under the Company's profile at www.sedar.com.

About Converge

Converge Technology Solutions Corp. is a North American 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.

Forward-Looking Statements

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, the anticipated use of proceeds from the Offering and other information that is not historical information. 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.

SOURCE Converge Technology Solutions Corp.