TORONTO, June 20, 2016 /CNW/ - Callidus Capital
Corporation (TSX:CBL) ("Callidus" or the "Corporation") announced
today that it is increasing the purchase price under its
substantial issuer bid (the "Offer") for the purchase and
cancellation by Callidus of 3,571,428 of its outstanding common
shares (the "Shares") to $15.50 per
Share from $14.00 per Share. Under
the revised Offer, the aggregate maximum purchase price payable by
Callidus is Cdn $55,357,134.
Callidus will pay an additional $1.50 per common share (the amount of the
increase over the previous purchase price) to all shareholders who
have previously tendered their Shares, including those that have
already been taken up and paid for by Callidus.
The Offer is currently scheduled to expire at 5:00 p.m. (Toronto time) on June
27, 2016. Callidus is extending the Offer to
5:00 p.m. (Toronto time) on July
27, 2016, as may be further extended or withdrawn by the
Corporation.
As previously disclosed, in connection with the Offer, the Board
received a formal valuation of the Shares (the "Valuation") from
National Bank Financial Inc. ("National Bank Financial") which
concludes that, based on the scope of National Bank Financial's
review and subject to the assumptions, restrictions and limitations
provided for therein, as of April 22,
2016 the fair market value per Share falls within the range
of $18 to $22.
Callidus undertook the Offer in order to provide liquidity for
shareholders wishing to sell their Shares, and increased the
purchase price in light of the current trading range of the shares
on the Toronto Stock Exchange. Even after the increase, the
purchase price continues to be a substantial discount to the fair
market value of the Shares set out in the Valuation. Callidus
believes that any purchases under the Offer will benefit all
persons who continue to hold Shares by increasing their equity
interest in the Corporation.
Callidus will mail a notice of variation to its shareholders,
setting out the new expiry date of the Offer.
This press release is for information purposes only and is not
an offer to buy or the solicitation of an offer to sell any
Shares.
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. Further information is
available on our website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation