Vancouver, British Columbia and Toronto, Ontario, Canada / TheNewswire / December 18, 2018 - Converge Technology Solutions Corp. ("Converge" or the "Company") (TSXV:CTS) announces today the framework of a bonus reinvestment plan, under which certain executive officers and employees will be required to invest a minimum of 25% of their annual or other incentive bonus in Converge common shares purchased on the open market (the "Plan"). No shares of the Company will be issued from treasury with respect to this the Plan. Converge plans to forward the total amount of bonus to be invested in common shares by the executive officers and employees to an independent third-party agent to purchase the shares on the open market. The purchasing agent will execute the trades in accordance with pre-established rules, which will be intended to limit the impact on the Company's share price. The shares will be held in escrow for a period of three years, with one-third being released each year.
"The Plan to require the investment of a minimum of 25% of the annual or other incentive bonus for certain executive officers and employees aligns the long-term interests of employees and shareholders. And it does so better than an employee stock option plan," said Shaun Maine, CEO of Converge. "We also believe that our plan can be more accurately reflected in our annual expenses as opposed to the estimates typically involved in expensing employee stock options. As a result, we do not expect to make any awards under the stock option plan that had been established by the former Norwick board of directors prior to the closing of our Qualifying Transaction."
The annual incentive and other bonus awards for key employees of the Company will be approved by the Compensation, Corporate Governance and Nominating Committee of the Board of Directors, taking into consideration Converge's financial results among other factors.
The Company also plans on requesting approval of an employee stock purchase plan at its annual general meeting in 2019, allowing for all employees to purchase stock through a payroll deduction mechanism.
Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solutions providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit http://www.convergetp.com.
For further information contact:
Mary Anne Palangio
Chief Financial Officer
Converge Technology Solutions Corp.
Notice to Reader: Forward-Looking Statements
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 and its business. 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. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered 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.