TORONTO and GATINEAU, QC, July 3, 2024
/PRNewswire/ - Converge Technology Solutions Corp.
("Converge" or the "Company") (TSX: CTS) (FSE: 0ZB)
(OTCQX: CTSDF) today announced that, as of June 27, 2024, the Company has fulfilled the
criteria necessary for the deconsolidation of its majority owned
subsidiary, Portage CyberTech Inc. ("Portage CyberTech") for
accounting purposes, following Converge's decision to relinquish
its right to majority representation on the board of directors of
Portage CyberTech (the "Portage Board") pursuant to a
voting agreement dated as of June 27,
2024 ("Voting Agreement").
In conjunction with the execution of the Voting Agreement,
Portage CyberTech announced it has entered into a new stand-alone
credit facility with the Canadian Imperial Bank of Commerce
("CIBC"), for up to $15 million, of
which $10 million will be drawn
immediately and the additional $5
million is contingent on achieving future financial
targets.
"Successfully meeting the criteria necessary to deconsolidate
Portage CyberTech from Converge is an important step for each
company," stated Shaun Maine, Group
CEO of Converge. "This pivot will allow Converge to remain a strong
partner and advocate for Portage CyberTech's industry leading
products and positions Portage CyberTech on its own
accelerated growth path, operating completely independent of
Converge."
Converge Group CEO, Shaun Maine
will maintain the position as Chairman of the Portage Board, which
consists of three members. Converge currently retains ownership of
approximately 51% of the outstanding common shares of Portage
CyberTech in addition to the $25
million long-term loan entered into with Portage
CyberTech.
About Portage CyberTech, A Converge Company
Portage CyberTech powers trusted digital transactions between
individuals, businesses, and government organizations. Driven by
some of the most ambitious digital projects and our desire to raise
the visibility of our clients at home and abroad, our committed
team of experts in all things digital – identity, access
management, trusted services, and communications, have created the
solutions designed to reach your customers. For more information,
visit portagecybertech.com.
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, artificial intelligence (AI),
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
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,
Portage Cybertech and their businesses. 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.
Although the Company bases these forward-looking statements on
assumptions that it believes are reasonable when made, the Company
cautions investors that forward-looking statements are not
guarantees of future performance and that its or Portage
Cybertech's actual results of operations, financial condition and
position in the industry in which they each operate may
differ materially from those made in or suggested by the
forward-looking statements contained in this press release. In
addition, even if the Company or Portage Cybertech's results of
operations, financial condition and position in the industry in
which they each operate are consistent with the forward-looking
statements contained in this press release, those results of
developments may not be indicative of results or developments in
subsequent periods.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. No
forward-looking statement is a guarantee of future results.
Accordingly, you should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents the Company's expectations as of the date specified
herein, and are subject to change after such date. However, the
Company disclaims any intention or obligation or undertaking to
update or revise any forward-looking information or to publicly
announce the results of any revisions to any of those statements,
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements.
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SOURCE Converge Technology Solutions Corp.