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
For further information: Paula Myson | (416) 945-3226 | [email protected]