Converge Announces Approval of Normal Course Issuer Bid

Rhea-AI Summary

Converge Technology Solutions Corp. (CTSDF) announced on August 8, 2022, that the Toronto Stock Exchange has approved its Normal Course Issuer Bid (NCIB). Under the NCIB, Converge can repurchase up to 10,744,818 common shares, representing 5% of outstanding shares as of July 31, 2022. The NCIB begins on August 11, 2022, and may run for one year. The company aims to use this buyback to enhance shareholder value as market prices may not reflect its true business value. Purchases will be executed through TSX and optional Canadian trading platforms.

Positive

• Approval of NCIB allowing repurchase of up to 10,744,818 common shares.
• Repurchase program aims to enhance shareholder value.

Negative

• None.

TORONTO and GATINEAU, Quebec, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Converge Technology Solutions Corp. (“Converge” or the “Company”) (TSX: CTS) (FSE:0ZB) (OTCQX:CTSDF) announces further to its press release dated July 27, 2022, 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 10,744,818 common shares (the “Common Shares”) representing 5% of the issued and outstanding Common Shares as at July 31, 2022. The NCIB will commence on August 11, 2022 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 has entered into an automatic share purchase plan agreement (the “ASPP”) with Hampton Securities Limited (“Hampton” or “the Broker”) to facilitate the repurchase of Common Shares. Pursuant to the ASPP, Hampton 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 170,868 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 683,473 Common Shares of the Company for the most recently completed six calendar months preceding July 31, 2022.

About Converge

Converge Technology Solutions Corp. is a software-enabled IT & Cloud Solutions provider focused on delivering industry-leading solutions and services. Converge’s global solution approach delivers advanced analytics, application modernization, cloud, 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.

For further information contact:

Converge Technology Solutions Corp.
Email: investors@convergetp.com
Phone: 416-360-1495

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. 

FAQ

What is Converge Technology Solutions Corp.'s Normal Course Issuer Bid (NCIB)?

The NCIB allows Converge to repurchase up to 10,744,818 common shares, or 5% of its outstanding shares, to enhance shareholder value.

When does Converge's NCIB start?

The NCIB begins on August 11, 2022, and will last for one year or until the maximum shares are repurchased.

How will Converge repurchase shares under the NCIB?

Converge will purchase shares on the open market through TSX and alternative Canadian trading systems at prevailing market prices.

What is the purpose of Converge's NCIB?

The NCIB aims to enhance shareholder value by repurchasing shares that the company believes are undervalued.