Callidus Increases Substantial Issuer Bid Price to $16.10 per share and Sets New Expiry Date

TORONTO, July 25, 2016 /CNW/ - Callidus Capital Corporation (TSX:CBL) ("Callidus" or the "Corporation") announced today that it is increasing the purchase price under its substantial issuer bid (the "Offer") for the purchase and cancellation by Callidus of 3,571,428 of its outstanding common shares (the "Shares") to $16.10 per Share from $15.50 per Share.  Under the revised Offer, the aggregate maximum purchase price payable by Callidus is Cdn $57,499,991.

Callidus will pay an additional $0.60 per common share (the amount of the increase over the previous purchase price) to all shareholders who have previously tendered their Shares, including the 1,118,902 shares that have already been taken up and paid for by Callidus.  The new purchase price represents a 4% increase over the last purchase price ($15.50 per share) and a 15% increase over the initial purchase price ($14.00 per share) set in April 2016.

The Offer is currently scheduled to expire at 5:00 p.m. (Toronto time) on July 27, 2016.  Callidus is extending the Offer to 5:00 p.m. (Toronto time) on August 30, 2016, as may be further extended or withdrawn by the Corporation.

As previously disclosed, in connection with the Offer, the Board received a formal valuation of the Shares (the "Valuation") from National Bank Financial Inc. ("National Bank Financial") which concludes that, based on the scope of National Bank Financial's review and subject to the assumptions, restrictions and limitations provided for therein, as of April 22, 2016 the fair market value per Share falls within the range of $18 to $22.

Callidus undertook the Offer in order to provide liquidity for shareholders wishing to sell their Shares, and increased the purchase price in light of the current trading range of the shares on the Toronto Stock Exchange.  Even after the increase, the purchase price continues to be a substantial discount to the fair market value of the Shares set out in the Valuation.  Callidus believes that any purchases under the Offer will benefit all persons who continue to hold Shares by increasing their equity interest in the Corporation.

Callidus will mail a notice of variation to its shareholders, setting out the new expiry date of the Offer.

This press release is for information purposes only and is not an offer to buy or the solicitation of an offer to sell any 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 borrower'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. Further information is available on our website, www.calliduscapital.ca.

SOURCE Callidus Capital Corporation

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