TORONTO, Oct. 17, 2016 /CNW/ - Callidus Capital
Corporation (TSX:CBL), (the "Company" or "Callidus"), today
announced that its Board of Directors has approved a 20% increase
in the regular dividend payable to shareholders. This
increases the dividend from $1.00 per
common share ("Common Share") per year to $1.20 per Common Share per year, or $0.10 per Common Share per month. The
dividend will continue to be paid monthly to the holders of
Callidus' outstanding Common Shares of record as of the close of
business on the last business day of each month.
The Company also announced that, in accordance with its
previously announced dividend policy, the Company will pay a
monthly eligible dividend of $0.10
per Common Share of the Company to holders of Common Shares of
record on October 31, 2016. The
dividend will be paid on or before November
18, 2016.
The Company's dividend policy, previously completed and proposed
normal course issuer bids, and its current substantial issuer bid,
are all part of Callidus' efforts to achieve a stock price that
better reflects the underlying value of its shares. 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. As previously
announced, in consideration of this persistent discount, 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.
The Company also offers a Dividend Reinvestment Plan (the
"Plan"), which is eligible to holders of Common Shares and provides
a convenient means to purchase additional Common Shares by
reinvesting cash dividends without having to pay commissions,
service charges or brokerage fees. Common Shares acquired under the
Plan will be automatically enrolled in the Plan. Shareholders who
hold their Common Shares through a broker, financial institution or
other nominee must enroll for dividend reinvestment through their
nominee holder.
Certain funds managed by the Catalyst Capital Group Inc. and
related parties who collectively hold 67% of the issued and
outstanding Common Shares participate in the Plan and reinvest all
of their cash dividends to purchase additional Common Shares.
The full text of the Plan can be obtained on the Company's
website at http://www.calliduscapital.ca/.
For purposes of the enhanced dividend tax credit rules contained
in the Income Tax Act (Canada) and any corresponding provincial and
territorial tax legislation, all dividends paid by Callidus on our
common shares in the calendar year, are designated as "eligible
dividends".
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 inflows
and outflows of each borrower, enabling Callidus to very
effectively manage risk of loss. Further information is available
on our website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation