CTS Increases Bought Shares to $250M GATINEAU, QC and TORONTO, Aug. 25, 2021 /CNW/ - Converge Technology Solutions Corp. ("Converge" or the "Company") (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) is pleased to announce that it has entered into an amended agreement with a syndicate of underwriters led by Canaccord Genuity Corp., as sole bookrunner, Scotiabank and CIBC Capital Markets as co-lead underwriters (the "Underwriters"), to increase the size of its previously announced offering of common shares. Under the amended terms, the Underwriters have agreed to purchase, on a bought deal basis, 21,350,000 common shares of the Company ("Offered Shares") at a price of $10.55 per Offered Share (the "Issue Price") for gross proceeds to the Company of $225,242,500 (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 Offering, to purchase up to an additional 3,202,500 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 $259,028,875.
Converge intends to use the net proceeds from the Offering for acquisitions, working capital and other general corporate purposes.