TORONTO, April 3, 2018 /CNW/ - Callidus Capital Corporation (TSX:CBL) ("Callidus" or the "Corporation") announced today that it will be submitting a notice of intention to undertake a normal course issuer bid to the Toronto Stock Exchange ("TSX") in connection with the purchase by Callidus of up to 2,648,529 of its common shares, representing 5% of the 52,970,597 common shares comprising Callidus' total issued and outstanding common shares as of April 2, 2018. All common shares purchased by Callidus 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.
Callidus' most recent normal course issuer bid expired on January 26, 2018. Under that bid, Callidus purchased a total of 2,495,839 common shares under the current normal course issuer bid at a weighted average price of $13.03.
The normal course issuer bid remains subject to the approval of the TSX and will begin on the date that is two trading days after the TSX's approval and will be open for a maximum period of 12 months. A further press release with additional details of the normal course issuer bid will be issued upon approval of the bid by the TSX.
Callidus determined to undertake the normal course issuer bid 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.
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