Callidus Capital Corporation became even popular in the gaming world, as it was directly linked to Bluberi Gaming Canada and its insolvency. July 2 brought the annual general and special meeting of shareholders aiming to shed more light on the companyās future operation and greenlight important decisions that would shape its future.
Callidus gave its nod to selling Bluberiās shares and assigning its debt to Catalyst Funds. Over the past months, the saga between Bluberi Gaming and Callidus has grown exponentially and accusations of predatory practices have been aimed at the private equity firm.
Bluberi Gamingās management claimed that Callidus has purposefully driven the gaming company to insolvency and its eventual end of operation. A CA$228-million lawsuit was filed indicating that Bluberi Gaming was subjected to unfair treatment part of a major scheme.
Callidus Owns 72.2% of Bluberi
The annual meeting of shareholders is anticipated by everyone closely involved with the company, as it offers them the opportunity to vote important changes and projects. This week saw the congregation review the special management information circular that was issued on May 31.
All individuals present on the shareholders meeting voted on the nominee directors mentioned in the circular. Almost unanimously shareholders voted in support of individuals such as Newton Glassman, Jim Riley, Tibor Donath, David Sutin, and Bradley W. Ashley and they will become Directors of Callidus Capital.
At the end of May, they were nominated and more than 50,400,000 shareholders had the opportunity to make up their mind ahead of the vote. In addition to that, shareholders also voted on the agreement that directly affects Bluberi Gaming.
Some 99 percent of nearly 8,700,000 shareholders voted in support of the transaction that would see subsidiary Catalyst Funds bag all shares of Bluberi Gaming. In addition to that, the outstanding debt generated by the gaming company is also going to be assigned to Catalyst Funds. This move was discussed at the beginning of June, giving shareholders the time to think about this subject too.
Sale Would be Finished by July 15
Projections are that July 15 is going to see the official transaction finished. The shares purchase is going to amount to CA$92.7 million. BDO Canada LLP kept a close eye on the situation and followed it over the past few weeks. The shares are priced between CA$84.5 million and CA$100.9 million. Such a move is expected to bring the saga to an end.
What should be pointed out is that the loan Callidus Capital offered amounted to CA$18.5 million and was supposed to boost the gaming company in its future endeavors. As it was specified in the lawsuit filed at the Quebec Court of Appeal, following Callidusā purchase of Bluberi assets, a loan was needed. Soon after the loan was offered, some crucial changes were made to the already discussed agreement, which eventually brought a surge in the interest rates.
Some of the plans envisioned as a result of this collaboration were the expansion of the gaming company and the exploration of new markets south. The ultimate goal was for it to step up its game and sell gaming devices to casino venues across North and South America. What happened next was far from the original projections.
