Callidus to Retain Value-Added Division of
C&C for Additional Monetization Opportunity
TORONTO, Jan. 31, 2019 /CNW/ - Callidus Capital
Corporation ("Callidus" or the "Company") (TSX:CBL) today announced
that it has closed the previously announced sale of the
commodity division of C&C Resources Inc. ("C&C") for
all-cash consideration of approximately $100
million.
The transaction results in Callidus realizing 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 remaining 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 manufacturing
opertaion in Cranbrook, B.C.
Callidus will use approximately $55
million of the cash received from the sale to repay
indebtedness and the balance will be used for general corporate
purposes.
Raymond James Ltd. acted as financial advisor to Callidus in
connection with the transaction.
Forward-Looking Statements
Certain statements
made herein contain forward-looking information. 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