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Callidus Capital provides updates on capitalization, substantial issuer bid

Toronto-based Callidus Capital Corp. took up an additional 460 common shares under its substantial issuer bid, which is the final take-up under the bid. The substantial issuer bid expired Dec. 29.

The company took up and paid for a total of 2,849,604 shares under the offer at C$16.50 per share, or C$47.0 million.

Callidus Capital also intends to submit a notice of intention to undertake a normal course issuer bid to the Toronto Stock Exchange in connection with the company's purchase of up to approximately 2.5 million of its shares, or 5% of the approximately 49.9 million common shares outstanding as of Dec. 29. The amount of shares is roughly the same number as that of the remaining untendered shares under the expired substantial issuer bid. The normal course issued bid, set to begin Jan. 27, 2017, is subject to approval from the Toronto Stock Exchange.

Executive Chairman and CEO Newton Glassman said in a news release that the company decided to do a normal course issuer bid because the substantial issuer bid remained unfulfilled, which resulted in insufficient leverage and muted return on equity as the company held cash to support the offer.

In addition, the company has formed a special committee composed of independent directors for its privatization process. While the company clarified that the formation of the committee is not in response to any specific proposal or approach from a third party, it has entered into confidentiality agreements and has begun distributing information to a number of interested parties. The privatization process is slated to complete as scheduled by the end of the second quarter of 2017.