TORONTO, May 29, 2024
/CNW/ - Cliffside Capital
Ltd. ("Cliffside" or the "Company") (TSXV: CEP)
is pleased to announce financial results for the first quarter of
2024. The Company reported the following:
- Decline in gross finance receivables by 37.4% to $107.5 million, with a corresponding decline in
securitization and subordinated debt by $40.9% to $94.8 million compared to Q1 2023
- Decline in net interest and other income by 35.2% to
$3.3 million, consistent with the
decline in gross finance receivables compared to Q1 2023
- Provision for credit losses declined by 42.5% to $1.2 million compared to Q1 2023
- Net loss before taxes of $0.3
million for the quarter ended March
31, 2024
The acquisition of finance receivables paused in 2023 as the
Company continued to assess macroeconomic conditions and undergo a
strategic review by a special committee (the "Independent
Committee"). The pause in acquisitions resulted in a 37.4% decline
in gross finance receivables to $107.5
million and a corresponding 40.9% decline in the
securitization and subordinated debt to $94.8 million compared to the same period in the
prior year. This decline in gross finance receivables together with
the macroeconomic environment continuing to be challenging have
adversely impacted the Company's financial results.
The Independent Committee, comprised of independent members of
the Board of Directors of the Company, with the assistance of
outside financial and legal advisors, is continuing to explore
strategic alternatives for the Company. The Company does not intend
to comment further until it determines that additional disclosure
is appropriate in the circumstances and in accordance with
applicable securities laws.
Further information on Cliffside's financial results can be
found at www.cliffsidecapital.ca, and a copy of the condensed
consolidated financial statements for the quarter-ended
March 31, 2024, prepared in
accordance with International Financial Reporting Standards, as
issued by the International Accounting Standards Board (IFRS
Accounting Standards), including International Accounting Standard
34, Interim Financial Reporting, and the corresponding management's
discussion and analysis will be available under the Company's
profile on www.sedar.com.
About Cliffside
Cliffside is focused
on investing in strategic partnerships with parties who have specialized expertise and a
proven track record in originating and servicing loans and similar
types of financial assets. Cliffside's strategy is to generate
revenue as an investor, affording its shareholders an opportunity
to invest in the growing alternative lending sector with the
potential for attractive yields and minimal operational risk while
earning a reliable total return. For more information,
see Cliffside's filings on SEDAR at
www.sedar.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect
to the business and operations of Cliffside and the ability of the
Independent Committee to successfully complete a Potential
Strategic Transaction. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results
and future events to differ materially from those expressed or
implied by such forward-looking statements. Such factors include,
but are not limited to: general business, economic, competitive,
political and social uncertainties; the results of operations;
potential for conflicts of interests; the availability of
appropriate finance receivables that may be purchased by the
Company's limited partnerships under existing funding facilities;
and volatility of common share price and volume. There can be no
assurance that such statements will prove to be accurate or
complete, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Cliffside disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Cliffside Capital Ltd.