TORONTO, Jan. 25, 2017 /CNW/ - Callidus Capital
Corporation (TSX: CBL) (the "Company" or "Callidus") is pleased to
announce that the Toronto Stock Exchange ("TSX"), has accepted the
Corporation's notice of intention to undertake a normal course
issuer bid ("NCIB"). Under the terms of the NCIB, Callidus may
acquire up to 2,495,839 of its common shares, representing 5% of
the 49,916,781 common shares comprising Callidus' total issued and
outstanding common share as of January 16,
2017, and will be purchased only when and if the Company
considers it advisable.
Callidus announced its intention to submit a notice to undertake
the NCIB to the TSX on December 29, 2016. The Company's
directors and management believe that from time to time the market
price of Callidus' common shares does not reflect the underlying
value of the common shares and that the purchase of common shares
for cancellation at such times is a prudent corporate measure that
will both increase the proportionate interest in the Company of,
and be advantageous to, all of the Company's remaining
shareholders.
As of January 16, 2017, the Corporation had 49,916,781
common shares issued and outstanding. The average daily trading
volume of Callidus' common shares over the last six completed
calendar months was 43,595 common shares. Accordingly, under TSX
rules and policies, Callidus will be entitled on any trading day to
purchase up to 10,898 of its common shares, subject to certain
exceptions for block purchases. The maximum bid price for the NCIB
is $20.50 per common share.
Callidus will have satisfied all regulatory requirements
relevant to the commencement of the NCIB as of January 27, 2017 and the NCIB will terminate on
the earlier of January 26, 2018 or on
the date on which the maximum number of common shares that can be
acquired pursuant to the NCIB have been purchased. All shares
purchased by the Corporation will be purchased on the open market
through the facilities of the TSX and/or alternate Canadian trading
systems at the market price at the time of purchase. Any
common shares purchased pursuant to the NCIB will be cancelled by
the Company.
Callidus is planning to enter into an automatic share purchase
plan ("ASPP") under which a designated broker could purchase common
shares pursuant to the NCIB on parameters established by the
Company. The purpose of the ASPP is to permit Callidus to purchase
shares under its NCIB during internal blackout periods when
Callidus will not be permitted to trade in its shares, including
regularly scheduled quarterly blackout periods.
The Company has made NCIB purchases during the 12 months
preceding the date of the notice filed with the TSX. A total of
2,561,396 common shares were purchased under the last NCIB at a
weighted average price per share of $13.33.
The Catalyst Capital Group Inc., which manages funds who
indirectly hold approximately 67% of the issued and outstanding
shares, has advised Callidus that it has no current intention of
selling any of the shares held by it or its funds into the
NCIB.
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