All amounts in Canadian dollars unless otherwise indicated.
TORONTO, July 13, 2018 /CNW/ - Callidus Capital
Corporation ("Callidus" or the "Company") (TSX: CBL), a provider of
flexible and innovative asset-based loans, today announced a
business growth update.
Loan Portfolio - The Company is pleased to announce that
it has closed a new loan for approximately $125 million. This transaction signals a
resumption of growth in Callidus' loan portfolio. This disclosure
is consistent with the Company's prior practice of informing the
market when the loan portfolio moves by more than $100 million or 10 percent.
The Company's pipeline presented on a basis consistent with past
reporting parameters stands at approximately $1.1 billion with signed back term sheets
totaling approximately $170 million.
Callidus undertakes extensive due diligence before closing on a
loan transaction and there can be no assurance that the results of
due diligence will be satisfactory to Callidus.
Dividend - In light of the resumption of growth in the
loan portfolio and anticipated funding requirements to support this
growth, the Company announced that its Board of Directors has
approved eliminating the Company's dividend effective
immediately.
Normal Course Issuer Bid - The Normal Course Issuer Bid
("NCIB") approved by the Toronto Stock Exchange remains in place.
However, no purchases have been made to date under this
NCIB. As the Company continues to pursue a potential
privatization transaction, the blackout period remains in effect
and, as such, it is unable to initiate an Automatic Share Purchase
Plan ("ASPP"). If and when the blackout period ends, the NCIB,
including parameters of the ASPP, will be reassessed.
There are no material facts or changes to report in relation to
a privatization. Callidus will update shareholders and the market
if and when developments occur.
Strategy for restoring and building shareholder value -
Callidus reaffirmed its previously announced six strategies for
restoring and building shareholder value, the first of which is
prudently growing the loan portfolio, which management believes it
is moving forward with, as indicated in this press release. The
other strategies the Company continues to pursue and remains
committed to are: actively managing the loan portfolio to minimize
realized losses and with a goal of maximizing recovery of the loan
loss provisions recorded to date; maximizing the cash-flow and
value of businesses consolidated; prudently increasing leverage,
including seeking external source of financing at the subsidiary
level; enhancing the management team as appropriate; and
considering other transactions that could support and / or benefit
the Corporation.
Forward-Looking Statements - Certain statements made
herein contain forward-looking information, including, but not
limited to, statements concerning the Company's expected
transaction pipeline, the potential privatization transaction, the
reassessment of the NCIB and the Company's six strategies to
restore and build shareholder value. Although Callidus
believes these statements to be reasonable, the assumptions upon
which they are based may prove to be incorrect. Furthermore,
the forward-looking statements contained in this press release are
made as at the date of this press release and Callidus does not
undertake any obligation to update or revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.
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. Further information is available on our
website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation