TORONTO, Oct. 30, 2014 /CNW/ - Callidus Capital Corporation ("Callidus" or the "Company") (TSX: CBL), a provider of flexible and innovative asset-based loans, announced today an update on the current status of its business.
We are pleased to report that as at October 29, 2014, our gross loans receivable were $671 million, with an aggregate committed amount of $856 million. This represents an increase from our position on August 13, 2014 when we reported gross loans receivable of $605 million and an aggregate committed amount of $755 million. As stated during our earnings teleconference call on August 15, 2014, this disclosure is consistent with our intention to inform the market should the loan portfolio change by more than $65 million. This threshold may be adjusted as the size of the loan portfolio changes.
Additionally, our pipeline of potential new loans is currently approximately $525 million, for which we have signed back term sheets that we are pursuing of approximately $160 million, recognizing that not all of these potential loans will close.
We continue to see exciting growth and opportunities in each of our targeted strategic growth areas. As the business continues to grow, we have added to the underwriting, finance and field examination groups. We will continue to provide you with updates as we make progress on these and other initiatives.
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 references to gross loans receivable, which is not a generally accepted accounting measure under International Financial Reporting Standards and therefore the definition used by the Company may differ from the definition of such term used by other entities. The Company defines "gross loans receivable" as the sum of (i) the aggregate amount of loans receivable on the relevant date, (ii) the loan loss allowance on such date, (iii) the book value of assets held for sale as they appear on the balance sheet, and (iv) discounts on loan acquisitions. Management believes that gross loans receivable is a useful supplemental measure that may assist purchasers in assessing the financial performance and the cash anticipated to be generated by the Company's business. Gross loans receivable should not be considered as the sole measure of the Company's performance and should not be considered in isolation from, or as a substitute for, analysis of the Company's financial statements.
SOURCE: Callidus Capital Corporation
For further information: David Reese, Chief Operating Officer, (416) 945-3016, [email protected], www.calliduscapital.ca