TORONTO, Aug. 9, 2017 /CNW/ - Callidus Capital
Corporation (the "Company" or "Callidus") today provided the
statement below in response to media reports containing allegations
regarding the Company and its majority shareholder, The Catalyst
Capital Group Inc. ("Catalyst").
The Wall Street Journal today published allegations about
Callidus and Catalyst that are completely false. Callidus is
particularly concerned that the Wall Street Journal chose to
publish these allegations after a comprehensive briefing held with
them on August 8, 2017. For
example, as part of that meeting it was made clear that the
treatment of the Catalyst guarantee for Callidus loans made to
Xchange Technology Group was in accordance with all applicable
accounting requirements. As well, full disclosure was
contained in both Catalyst's financial reports to its limited
partners and through Callidus' public disclosures on an ongoing
basis. The accounting treatment and disclosure were entirely
appropriate and there is no basis for allegations to the contrary,
facts the Wall Street Journal chose to ignore.
These allegations presented are primarily based on anonymous
sources and are believed to have been initiated by individuals
against whom Callidus has current litigation relating to the
enforcement of guaranties. Those individuals have already had
the opportunity to present their allegations in court without
success. That is because the allegations are false. The
Company also knows that those individuals have been peddling the
same false allegations to at least one other media outlet, without
result.
As a dynamic alternative lender, Callidus takes on risks that
most Canadian lenders shy away from. Callidus has helped over one
hundred companies with access to capital – capital that would
otherwise not have been available and that they needed to keep
their businesses in operation. The Company's success in
supporting companies facing significant challenges year after year
speaks for itself.
Not surprisingly, the nature of Callidus' loan portfolio may
involve litigation. Importantly, there has never been a judgment or
finding by any court in North
America questioning the standards and ethics by which
Callidus underwrites or enforce its loans.
The Company knows of no legitimate basis for any whistleblower
complaint. It is extraordinary that the press has been given
copies of confidential whistleblower reports that neither Callidus
nor Catalyst has ever seen. This is an effort by short
sellers and others who are attempting to manipulate the market by
making false allegations. Once made aware of these reports by
the media, the Company proactively met with various authorities to
discuss these matters in detail.
Callidus believes that those individuals, having failed in
court, are filing deliberately misleading whistleblower reports
with the OSC so that they can then leak them to the press in the
hope that the press will publish the allegations. As a
result, the media and public markets are misled and the legitimate
OSC 'whistleblower' process is exploited for personal advantage,
and to do damage to the market value of Callidus, and to the
reputation, operations and investments of its majority shareholder,
Catalyst.
Any abuse of the 'whistleblower' process is a very serious
matter that has significant consequences. For that reason,
Callidus believes that it is the actions of those individuals
that warrants investigation.
Forward-Looking Statements
Certain statements made herein contain forward-looking
information. 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.
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