Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Converge Technology Solutions Corp T.CTS

Alternate Symbol(s):  CTSDF

Converge Technology Solutions Corp. is a services-led, software-enabled, information technology (IT) and cloud solutions provider. Its global approach delivers advanced analytics, artificial intelligence (AI), application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries. It supports these solutions with advisory, implementation, and managed services across all IT vendors in the marketplace. Its segments include Converge Hybrid IT Solutions (Converge), and Portage Software-as-a-Solution (SaaS) Solutions. Converge is focused on delivering advanced analytics, application modernization, cloud, cybersecurity, digital infrastructure, digital workplace, and managed services offerings and provision of hardware and software products and solutions to clients across various industries and organizations. SaaS is focused on digital transactions between individuals, businesses, and government organizations.


TSX:CTS - Post by User

Comment by AlwaysLong683on Aug 30, 2022 7:02am
166 Views
Post# 34928877

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:BNN

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:BNNCTS is not alone in this regard with regard to debt load. There are a number of Canadian small cap tech firms who have taken on too much debt over the past few years in my view. This makes current debt renewals upon maturity or new borrowings come with higher interest rates. Also, if your company is small and has a high debt load, those insititutions that are willing to lend you more money will likely add a sizeable premium to your interest rate to compensate them for added risk.

Equity raise? Sure, if you are willing to issue new shares at (or slightly below) the trailing 30-day weighted average share price (or however the company and the underwriters / private placement party agree on calculating the purchase price per new share issued).

Given the above, small cap Canadian companies with large debt loads that have seen their share prices drop significantly are caught between a rock and a hard place. This is what happens when you go on an acquisition spree while carrying too much debt.

Further, the BOC will likely continue to raise interest rates, so any existing debt coming up for renewal will get even more pricey.


Would not be surprised to see companies like CTS sell off some assets to raise cash over the next year or so.

<< Previous
Bullboard Posts
Next >>