TORONTO, May 12, 2015 /CNW/ - Callidus Capital
Corporation (TSX: CBL) ("Callidus" or the "Corporation") announces
that the Toronto Stock Exchange ("TSX"), has accepted the
Corporation's notice of intention to undertake a normal course
issuer bid. Under the terms of the normal course issuer bid,
Callidus may acquire up to 2,561,396 of its common shares,
representing 5% of the 51,227,920 common shares
comprising Callidus' total issued and outstanding common shares as
of May 11, 2015.
Callidus also plans to enter into an automatic share purchase
plan with GMP Securities L.P. for the purposes of conducting the
normal course issuer bid. Such plan will ensure that Callidus has
no discretion over trading in respect of its common shares during
the term of the normal course issuer bid.
Callidus announced its intention to submit a notice to undertake
the normal course issuer bid to the TSX on April 27, 2015. Callidus determined to undertake
the normal course issuer bid after receiving advice of its
financial advisors 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.
As of May 11, 2015, the
Corporation had 51,227,920 common shares issued and outstanding.
The average daily trading volume of Callidus' common shares over
the last six completed calendar months was 166,611 common
shares. Accordingly, under TSX rules and policies, Callidus
is entitled on any trading day to purchase up to 41,652 of its
common shares. The TSX rules also provide that once a week, in
excess of the daily 41,652 common share repurchase limit, Callidus
may also purchase a block of shares not owned by an insider (i)
having a purchase price of $200,000
or more, (ii) of at least 5,000 common shares having a purchase
price of at least $50,000, or (iii)
of at least 20 board lots of common shares which total 150% or more
of the average daily trading volume of the common shares.
The normal course issuer bid will begin on May 19, 2015 and will terminate on May 18, 2016, or on such earlier date as Callidus
may complete its purchases pursuant to the notice of intention to
make a normal course issuer bid filed with the TSX. All shares
purchased by the Corporation 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. The
prices that Callidus will pay for any of the common shares
purchased will be the market price of the shares at the time of
acquisition, determined in accordance with the rules of the
TSX.
The Corporation has not made any normal course issuer bid
purchases during the 12 months preceding the date of the notice
filed with the TSX.
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.
Forward-Looking Statements
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