Callidus to Retain Value-Added Division of
C&C for Additional Monetization Opportunity
TORONTO, Dec. 3, 2018 /CNW/ - Callidus Capital Corporation
("Callidus" or the "Company") (TSX:CBL) today announced that it has
entered into an agreement to sell the commodity division of C&C
Resources Inc. ("C&C") for all-cash consideration of
approximately $100 million.
Closing is expected to occur no later than the first quarter of
2019.
Callidus will realize the vast majority of the current carrying
value for all of the assets of C&C, which it acquired in 2017,
while retaining ownership of C&C's remaining assets.
Those assets include C&C's growth-oriented, value-added
operations, including the Quesnel,
B.C., sawmill, processing facilities and associated logging
operations, as well as a plant in Cranbrook, B.C.
David Reese, President & COO
of Callidus, commented, "The transaction terms are consistent with
the letter of intent that we previously announced. This
transaction affirms our investment strategy and internal
valuations. As previously disclosed, the cash to be received
by us represents the vast majority of the carrying value of the
entire C&C business. I look forward to monetizing
C&C's remaining assets."
As previously announced, the transaction is not subject to due
diligence, employment or financing conditions. Closing will
be subject to customary closing conditions including all material
consents and necessary regulatory approvals being obtained, the
absence of any material adverse change, and no events having
occurred that would adversely affect the Buyer's ownership or
operation of the companies and assets being purchased, or that
would otherwise restrict the parties from completing the
transaction.
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