All amounts in Canadian dollars unless otherwise indicated.
TORONTO, Aug. 14, 2019 /CNW/ - Callidus Capital
Corporation (TSX:CBL) (the "Company" or "Callidus") today announced
its financial and operating results for the second quarter
(unaudited) ended June 30, 2019.
Highlights
- In May 2019, the Company sold its
portion of two loans to Catalyst Fund V. Catalyst Fund V now has
100% participation in those two loans resulting in the Company
fully derecognizing the two loans.
- Provision for loan losses for the quarter and the year-to-date
period of $36.0 and $37.7 million (Q2-2018 - $21.3 million; YTD Q2-2018 - $36.3 million, respectively), respectively was
recorded in the statements of income. The majority of this
provision related to an impairment recorded on a loan to an oil and
gas company.
- The Company recorded a net loss of $79.7
million for the quarter compared to a loss of $40.8 million in the same period last year. For
the year-to-date period, the Company recorded a net loss of
$104.4 million (YTD Q2-2018 –
$47.8 million).
- Loss per share for the quarter of $1.40 compared to a loss of $0.75 in the same period last year. Loss per
share for the year-to-date period of $1.83 compared to a loss of $0.90 in the same period last year.
- The Company and The Catalyst Capital Group Inc. have recently
undertaken further discussions with Braslyn Ltd. regarding the
specific terms of a privatization transaction. The Company and
Braslyn Ltd. intend to undertake further discussions regarding
terms and price of such a potential transaction, and accordingly,
there can be no assurance that the terms of a transaction will be
agreed, or if agreed, of the price at which such a transaction
would be undertaken.
- Effective June 30, 2019, the
March 28, 2019 arrangement was
amended to provide that prior to September
30, 2020 (subject to the terms of any agreement that may be
entered into between The Catalyst Capital Group Inc. ("Catalyst
Funds"). and a third party effective upon a privatization of
Callidus provided such terms do not compromise the ability of
Callidus to continue as a going concern) (the "Cash Payment Demand
Date") no demand of the bridge loan shall be effective for cash to
the extent Callidus determines via a board resolution that it would
not be prudent to give effect to such demand having regard its cash
position. Other terms and facilities referenced in the March 28, 2019 agreement were also extended to
September 30, 2020. All other terms
remain unchanged.
- Susbequent to the period-end, in July
2019, the Company sold its shares (the "Bluberi Shares") of
Bluberi Gaming Canada Inc. ("Bluberi") to certain investment funds
managed by the Catalyst Funds. The purchase price paid by the
Catalyst Funds for the Bluberi Shares was $92.7 million, which was satisfied by reducing
$92.7 million of the indebtedness of
Callidus owing to the Catalyst Funds under Callidus' subordinated
bridge facility by the same amount. The definitive agreement (the
"Agreement") in respect of the Bluberi Transaction contemplated
that, if the consent to the lenders (the "CLO Lenders") under the
Company's collateralized loan agreement was obtained, Callidus also
would assign to the Catalyst Funds the debt (the "Bluberi Debt")
owing by Bluberi to Callidus and Callidus' wholly-owned subsidiary,
Callidus ABL Corporation. As the consent of the CLO Lenders has not
been obtained, the Company has not assigned the Bluberi Debt to the
Catalyst Funds and as such the Company continues to recognize
Bluberi Debt.
- Subsequent to the period-end, in July
2019, the Company announced that Newton Glassman had asked the board of directors
of Callidus not to reappoint him as Chief Executive Officer at this
time for health reasons. Mr. Glassman has committed to continue as
a director, a member of the Valuation Committee and Chair of the
Callidus Credit Committee. It was previously announced on
August 13, 2018 that Mr. Glassman was
taking a leave of absence from his role as Chief Executive
Officer.
- Subsequent to the period-end, in August
2019, Company converted $65.0
million of the subordinated bridge facility into
$65.0 million of 9.5% cumulative,
redeemable, non-voting preference shares to maintain a minimum
shareholders' equity of $20
million.
For more information, please refer to the Company's unaudited
condensed consolidated interim financial statements and management
discussion and analysis for the period ended June 30, 2019 filed on the System for Electronic
Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
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
