TORONTO, May 12, 2015 /CNW/ - Callidus Capital Corporation (TSX: CBL) ("Callidus" or the "Corporation") announces that the Toronto Stock Exchange ("TSX"), has accepted the Corporation's notice of intention to undertake a normal course issuer bid. Under the terms of the normal course issuer bid, Callidus may acquire up to 2,561,396 of its common shares, representing 5% of the 51,227,920 common shares comprising Callidus' total issued and outstanding common shares as of May 11, 2015.
Callidus also plans to enter into an automatic share purchase plan with GMP Securities L.P. for the purposes of conducting the normal course issuer bid. Such plan will ensure that Callidus has no discretion over trading in respect of its common shares during the term of the normal course issuer bid.
Callidus announced its intention to submit a notice to undertake the normal course issuer bid to the TSX on April 27, 2015. Callidus determined to undertake the normal course issuer bid after receiving advice of its financial advisors as, in the opinion of management, its common shares have recently traded in a price range that does not reflect the underlying value of the Corporation. Callidus believes that any purchases under the normal course issuer bid will benefit all persons who continue to hold common shares by increasing their equity interest in the Corporation.
As of May 11, 2015, the Corporation had 51,227,920 common shares issued and outstanding. The average daily trading volume of Callidus' common shares over the last six completed calendar months was 166,611 common shares. Accordingly, under TSX rules and policies, Callidus is entitled on any trading day to purchase up to 41,652 of its common shares. The TSX rules also provide that once a week, in excess of the daily 41,652 common share repurchase limit, Callidus may also purchase a block of shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 common shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of common shares which total 150% or more of the average daily trading volume of the common shares.
The normal course issuer bid will begin on May 19, 2015 and will terminate on May 18, 2016, or on such earlier date as Callidus may complete its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX. All shares purchased by the Corporation will be purchased on the open market through the facilities of the TSX in accordance with the rules, regulations and policies of the TSX and will be cancelled. The prices that Callidus will pay for any of the common shares purchased will be the market price of the shares at the time of acquisition, determined in accordance with the rules of the TSX.
The Corporation has not made any normal course issuer bid purchases during the 12 months preceding the date of the notice filed with the TSX.
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 company's assets, its enterprise value and borrowing needs. Callidus employs a proprietary system of monitoring collateral and exercising control over the cash inflow and outflows of each borrower, enabling Callidus to very effectively manage any risk of loss.
This press release contains forward-looking statements that involve a number of risks and uncertainties, including in respect of the market price of the common shares and the benefit of the normal course issuer bid to existing shareholders. 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 publicly or to 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.
SOURCE Callidus Capital Corporation
For further information: David Reese, President and Chief Operating Officer, (416) 945-3016, [email protected], www.calliduscapital.ca; Jean Lépine, Director, Investor Relations, (416) 945-3023, [email protected]