TORONTO, May 26, 2016 /CNW/ - Callidus Capital Corporation (TSX: CBL) ("Callidus" or the "Corporation") today provided an update on its substantial issuer bid and proposed normal course issuer bid.

Callidus' substantial issuer bid (the "Offer") for the purchase and cancellation by Callidus of up to $50 million of its outstanding common shares from shareholders is scheduled to expire at 5:00 p.m. (Toronto time) on May 27, 2016.  As of 3:30 p.m. on May 26, 2016, 606,910 common shares had been validly tendered to the Offer.

Callidus has determined that if the maximum number of shares are not tendered to the Offer by the expiry time, it will extend the Offer until 5:00 p.m. (Toronto time) on June 27, 2016, unless further extended or withdrawn by the Corporation.  If the Offer is extended, the Corporation will issue a further press release and mail a notice of extension to its shareholders setting out the new expiry date of the Offer.

In the event the Offer is extended, the Corporation will delay the implementation of its previously announced normal course issuer bid until the expiry of the Offer  Pursuant to the rules of the Toronto Stock Exchange ("TSX"), Callidus is not permitted to make purchases under a normal course issuer bid prior to the expiry of the Offer.  Upon expiration of the Offer, Callidus will immediately seek approval for the implementation 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 May 17, 2016.  Under the proposed normal course issuer bid, Callidus intends to purchase up to 2,554,564 of its common shares, representing 5% of Callidus' total issued and outstanding common shares as of May 16, 2016. The shares subject to the normal course issuer bid are in addition to the 3,571,428 common shares subject to the Offer.  Callidus currently intends to purchase shares under the normal course issuer bid to a maximum price of $16.50 per share. 

Callidus determined to undertake the Offer and the normal course issuer bid in order to provide liquidity for shareholders wishing to sell their shares.  Callidus believes that any purchases under the Offer and the normal course issuer bid will benefit all persons who continue to hold common shares by increasing their equity interest in the Corporation. 

This press release is for information purposes only and is not an offer to buy or the solicitation of an offer to sell any common 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 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.

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