Callidus Capital Announces the Closing of the Sale of Bluberi Gaming Canada Inc. to Catalyst Funds

 July 10, 2019 - 11:30 PM EDT
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Callidus Capital Announces the Closing of the Sale of Bluberi Gaming Canada Inc. to Catalyst Funds
Callidus Capital Announces the Closing of the Sale of Bluberi Gaming Canada Inc. to Catalyst Funds

Canada NewsWire

TORONTO, July 10, 2019 /CNW/ - Callidus Capital Corporation ("Callidus" or the "Company") (TSX:CBL) today announced that it has closed its previously announced transaction (the "Bluberi Transaction") to sell the Company's shares (the "Bluberi Shares") of Bluberi Gaming Canada Inc. ("Bluberi") to certain investment funds managed by The Catalyst Capital Group Inc. (the "Catalyst Funds").

The purchase price paid by the Catalyst Funds for the Bluberi Shares was $92.7 million, which was satisfied by setting off $92.7 million of the indebtedness of Callidus owing to the Catalyst Funds under Callidus' subordinated bridge facility. The purchase price is the mid-point of the valuation range for the Bluberi Shares, as determined by an independent valuator.

Callidus' shareholders voted to approve the Bluberi Transaction at Callidus' annual general and special meeting held on July 2, 2019, which vote excluded the votes attached to shares held by the Catalyst Funds and their related parties as required pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.

The definitive agreement (the "Agreement") in respect of the Bluberi Transaction contemplated that, if the consent to the lenders (the "CLO Lenders") under the Company's collateralized loan agreement was obtained, Callidus also would assign to the Catalyst Funds the debt (the "Bluberi Debt") owing by Bluberi to Callidus and Callidus' wholly-owned subsidiary, Callidus ABL Corporation. As the consent of the CLO Lenders has not been obtained, the Company has not assigned the Bluberi Debt to the Catalyst Funds.

Further information regarding the Bluberi Transaction is available in the management information circular of the Company dated May 31, 2019, the Agreement and the material change report of the Company in respect of the Bluberi Transaction. Copies of the foregoing are available on SEDAR at www.sedar.com.

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. Further information is available on our website, www.calliduscapital.ca

SOURCE Callidus Capital Corporation

View original content: http://www.newswire.ca/en/releases/archive/July2019/10/c1918.html

Investor Relations | (416) 945-3240 | investor@calliduscapital.caCopyright CNW Group 2019


Source: Canada Newswire (July 10, 2019 - 11:30 PM EDT)

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