All amounts in Canadian dollars unless otherwise indicated.

TORONTO, July 13, 2018 /CNW/ - Callidus Capital Corporation ("Callidus" or the "Company") (TSX: CBL), a provider of flexible and innovative asset-based loans, today announced a business growth update.

Loan Portfolio - The Company is pleased to announce that it has closed a new loan for approximately $125 million. This transaction signals a resumption of growth in Callidus' loan portfolio. This disclosure is consistent with the Company's prior practice of informing the market when the loan portfolio moves by more than $100 million or 10 percent.

The Company's pipeline presented on a basis consistent with past reporting parameters stands at approximately $1.1 billion with signed back term sheets totaling approximately $170 million. Callidus undertakes extensive due diligence before closing on a loan transaction and there can be no assurance that the results of due diligence will be satisfactory to Callidus.

Dividend - In light of the resumption of growth in the loan portfolio and anticipated funding requirements to support this growth, the Company announced that its Board of Directors has approved eliminating the Company's dividend effective immediately.

Normal Course Issuer Bid - The Normal Course Issuer Bid ("NCIB") approved by the Toronto Stock Exchange remains in place. However, no purchases have been made to date under this NCIB. As the Company continues to pursue a potential privatization transaction, the blackout period remains in effect and, as such, it is unable to initiate an Automatic Share Purchase Plan ("ASPP"). If and when the blackout period ends, the NCIB, including parameters of the ASPP, will be reassessed.

There are no material facts or changes to report in relation to a privatization. Callidus will update shareholders and the market if and when developments occur.

Strategy for restoring and building shareholder value - Callidus reaffirmed its previously announced six strategies for restoring and building shareholder value, the first of which is prudently growing the loan portfolio, which management believes it is moving forward with, as indicated in this press release. The other strategies the Company continues to pursue and remains committed to are: actively managing the loan portfolio to minimize realized losses and with a goal of maximizing recovery of the loan loss provisions recorded to date; maximizing the cash-flow and value of businesses consolidated; prudently increasing leverage, including seeking external source of financing at the subsidiary level; enhancing the management team as appropriate; and considering other transactions that could support and / or benefit the Corporation.

Forward-Looking Statements - Certain statements made herein contain forward-looking information, including, but not limited to, statements concerning the Company's expected transaction pipeline, the potential privatization transaction, the reassessment of the NCIB and the Company's six strategies to restore and build shareholder value.  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 or 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.

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

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