An anonymous director reports

CONVERGE PROVIDES Q4-2023 CASH FLOW UPDATE

Converge Technology Solutions Corp. expects cash from operations for its fourth quarter ended Dec. 31, 2023 (Q4 2023), to be stronger than it had previously indicated.

Throughout the second half of 2023, the company has implemented several new processes and updated controls to better align the overall business with the global scale and reach it has realized in recent years. During the fourth quarter, the combined effect of strategically managing working capital and, most notably, inventory contributed meaningfully to cash from operating activities. As a result, the company now expects to report:

• Cash from operating activities in Q4 2023 of $109.0-million to $116.0-million. This compares with $30.4-million in Q4 2022;
• Cash from operating activities for fiscal 2023 of $224.0-million to $231.0-million. This compares with $41.6-million for fiscal 2022;
• Reduction in net debt (1) by $52.0-million year over year to $209.8-million at the end of fiscal 2023, compared with net debt of $261.8-million at the end of fiscal 2022.

Additionally, the company expects to report Q4 2023 gross profit and adjusted EBITDA (2) levels that are in line with previously provided guidance and current consensus estimates.

Complete financial results for the fourth quarter and fiscal 2023 will be published before the markets open on Wednesday, March 6, 2024.

About Converge Technology Solutions Corp.

Converge is a services-led, software-enabled, information technology and cloud solutions provider focused on delivering industry-leading solutions. Converge's global approach delivers advanced analytics, 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 multifaceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors.

(1) (2) Non-IFRS (international financial reporting standards) measures

This news release refers to certain performance indicators, including adjusted EBITDA and net debt, that do not have any standardized meaning prescribed by IFRS and may not be comparable with similar measures presented by other companies. Management believes that these measures are useful to most shareholders, creditors and other stakeholders in analyzing the company's operating results, and can highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.

Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets, and assess the ability to meet capital expenditure and working capital requirements. These non-IFRS financial measures should not be considered as an alternative to the consolidated income (loss) or any other measure of performance under IFRS. Investors are encouraged to review the company's financial statements and disclosures in their entirety, are cautioned not to put undue reliance on non-IFRS measures, and are advised to view them in conjunction with the most comparable IFRS financial measures.

Adjusted EBITDA represents net income adjusted to exclude amortization, depreciation, interest expense and finance costs, foreign exchange gains and losses, share-based compensation expense, income tax expense, and special charges. Special charges consist primarily of restructuring related expenses for employee terminations, lease terminations and restructuring of acquired companies, as well as certain legal fees or provisions related to acquired companies. From time to time, it may also include adjustments in the fair value of contingent consideration, and other such non-recurring costs related to restructuring, financing and acquisitions. The IFRS measure most directly comparable with adjusted EBITDA presented in the company's financial statements is net (loss) income.

Net debt represents borrowings (both current and non-current) less cash.

We seek Safe Harbor.