In a recent announcement, Converge Technology Solutions Corp. has declared that, effective June 27, 2024, the company has met the necessary criteria for the deconsolidation of its majority owned subsidiary, Portage CyberTech Inc. This decision is a result of Converge’s decision to relinquish its right to majority representation on the board of directors of Portage CyberTech and signifies a significant change for the company.
As part of this deconsolidation, Portage CyberTech will now operate completely independently from Converge. In tandem with this move, the company has secured a new standalone credit facility with the Canadian Imperial Bank of Commerce (CIBC) for up to $15 million. This facility will greatly enhance Portage CyberTech’s financial capabilities, with $10 million being drawn immediately and an additional $5 million contingent on meeting future financial targets.
Shaun Maine, Group CEO of Converge, has emphasized the importance of this change, noting that it will enable both companies to effectively pursue their individual growth paths. While maintaining a strategic partnership, Converge will continue to support Portage CyberTech, which now has the opportunity to accelerate its growth and thrive independently within its industry.
Despite the deconsolidation, Shaun Maine, in his capacity as Group CEO, will continue to serve as Chairman of the Portage Board. This three-member board will steer the direction of Portage CyberTech as it enters this new phase of independence. Converge currently retains ownership of approximately 51% of the outstanding common shares of Portage CyberTech as well as a $25 million long-term loan agreement.
Portage CyberTech, a Converge Company, is committed to facilitating trusted digital transactions among individuals, businesses, and government organizations. With a skilled team of experts, the company is dedicated to providing industry-leading digital solutions across various sectors.
Converge Technology Solutions Corp. is a leading IT & Cloud Solutions provider, specializing in delivering cutting-edge solutions such as advanced analytics, artificial intelligence, application modernization, and cybersecurity. Converge is renowned for its industry-leading expertise.
It is important to note that the information shared in this announcement is classified as “forward-looking statements”. While the Company bases these forward-looking statements on reasonable assumptions, it is essential to exercise caution. Actual results and future events may differ from those anticipated, and there is no guarantee that the information provided will prove to be accurate. Consequently, it is advisable not to place undue reliance on this forward-looking information.
In conclusion, the deconsolidation of Portage CyberTech represents a significant development for both Converge Technology Solutions and Portage CyberTech. This strategic shift will enable both companies to pursue independent growth opportunities and continue delivering innovative solutions in their respective fields. The transition is a pivotal moment for Portage CyberTech as it embarks on a new phase of its journey towards success.