Converge Technology Solutions Corp. Announces $5 Million Bought Deal Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
VANCOUVER, British Columbia and TORONTO, Feb. 11, 2020 (GLOBE NEWSWIRE) -- Converge Technology Solutions Corp. (“Converge” or the “Company”) (TSXV: CTS) (FSE:0ZB)
(OTCQX:CTSDF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. (collectively, the “Underwriters”), pursuant
to which the Underwriters have agreed to purchase, on a bought deal basis, 3,846,154 common shares of the Company (“Offered Shares”) at a price of $1.30 per Offered Share (the
“Issue Price”) for gross proceeds to the Company of $5 million (the “Offering”). In addition, Converge has granted the Underwriters an option, exercisable at any
time, in whole or in part, until the date that is 30 days following the closing of the financing, to purchase up to an additional 576,923 common shares of the Company solely to cover
over-allotments, if any, and for market stabilization purposes. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be $5.75
Converge intends to use the net proceeds from the Offering for acquisitions, working capital and for other general corporate purposes.
The Offering will be conducted in each of the provinces of Canada by way of a prospectus supplement to the Company’s short form base shelf prospectus dated July 8, 2019 (the “Prospectus Supplement”) and elsewhere on a private placement basis. Converge intends to file the Prospectus Supplement with the securities regulatory authorities in Canada, which will be available on SEDAR under the Company’s profile at www.sedar.com.
The Offering is scheduled to close on or about February 20, 2020 and is subject to customary closing conditions, including listing of the Offered Shares on the TSX Venture Exchange and any required approvals of the exchange and applicable securities regulatory authorities.
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.