OTCPK:HBAYF - Post by User
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TeamEddieon Nov 26, 2019 5:26pm
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Catalyst wanted $18 got 75 cents - go team
Catalyst wanted $18 got 75 cents - go team 2019-11-01 07:23 ET - In the News
The Globe and Mail reports in its Friday edition that Callidus Capital shareholders approved an offer Thursday to take the alternative lender private in a deal that values the company at just $42-million, a far cry from the $1-billion market cap it boasted in the early stage of its five-year run as a public company. The Globe's Andrew Willis writes that Callidus is controlled by Newton Glassman, who as chairman of Callidus, announced in 2016 that the company was mulling going private. He repeatedly held out the prospect of buying out shareholders for between $18 and $22 a share. However, several years of operating losses and writedowns on bad loans left Callidus in "financial distress," said David Sutin, a Callidus director and chairman of the special committee that oversaw its sale, as he recommended on Thursday that shareholders accept a buyout offer from Braslyn Ltd. If the bid by Braslyn was not accepted, Mr. Sutin's committee had told investors that Callidus would likely be insolvent, and its shares would be worth nothing. Callidus minority shareholders voted 78.7 per cent in favour of an offer to sell the company for 75 cents a share. The deal needed to be approved by a majority of minority shareholders.