TORONTO, Sept. 30, 2016 /CNW/ - Callidus Capital
Corporation (TSX:CBL) ("Callidus" or the "Company") announced today
that it will extend its substantial issuer bid (the "Offer") for
the purchase and cancellation by Callidus of up to 3,571,428 of its
outstanding common shares (the "Shares") at $16.50 per share, from its shareholders. The
Offer is currently scheduled to expire at 5:00 p.m. (Toronto time) on September 30, 2016. Callidus is extending
the Offer to 5:00 p.m. (Toronto time) on October 31, 2016, as may be further extended or
withdrawn by the Corporation. As at September 29, 2016, the Company had taken up and
paid for 1,900,554 shares under the Offer. Callidus will mail
a notice of variation and extension to its shareholders, setting
out the new expiry date of the Offer.
As previously disclosed, in connection with the Offer, the Board
received a formal valuation of the Shares (the "Valuation") from
National Bank Financial Inc. ("NBF") which concludes that, based on
the scope of NBF's review and subject to the assumptions,
restrictions and limitations provided for therein, as of
April 22, 2016 the fair market value
per Share falls within the range of $18 to
$22.
The Company had previously announced that if its shares continue
to trade at a significant discount to their fair market value, it
might seek to privatize the Company. In consideration of this
persistent discount, the Company has also announced that the Board
of Directors has determined to commence the process of soliciting
privatization proposals for the Company and is in the process
retaining a financial advisor to assist with that
process.
Newton Glassman, Executive
Chairman commented, "We have previously outlined a four stage
process we would pursue to eliminate the persistent discount on our
shares. We have undertaken a normal course issuer bid, the
implementation of a dividend, and a substantial issuer bid.
Despite these steps, the Company's strong operating and financial
performance, and the restart of growth in the loan portfolio,
Callidus shares continue to trade at a significant
discount. Accordingly, our Board has determined to
explore the possibility of a privatization of the Company with a
view to maximizing value for all shareholders, and will be hiring
advisors to assist in that regard."
There can be no certainty that a privatization transaction will
be proposed. If one is proposed, there is no certainty as to
what price may be offered or whether that price will be acceptable
or within the range of fair value. As well, there is no
certainty as to the timing of any such transaction.
The Catalyst Capital Group Inc. ("CCGI"), who indirectly holds
approximately 65% of the issued and outstanding Shares, has advised
the Board that it has no current intention of selling any of the
Shares held by it or its funds nor does it intend to bid for the
shares they do not already own.
This press release is for information purposes only and is not
an offer to buy or the solicitation of an offer to sell any
Shares.
About Callidus Capital Corporation
Established in 2003, Callidus Capital Corporation is a Canadian
company that specializes in innovative and creative financing
solutions for companies that are unable to obtain adequate
financing from conventional lending institutions. Unlike
conventional lending institutions who demand a long list of
covenants and make credit decisions based on cash flow and
projections, Callidus credit facilities have few, if any, covenants
and are based on the value of the borrower's assets, its enterprise
value and borrowing needs. Callidus employs a proprietary system of
monitoring collateral and exercising control over the cash inflow
and outflows of each borrower, enabling Callidus to very
effectively manage any risk of loss. Further information is
available on our website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation