TORONTO, May 29, 2023
/CNW/ - Cliffside Capital Ltd. ("Cliffside" or the
"Company") (TSXV: CEP) is pleased to announce financial
results for the first quarter of 2023. The Company reported the
following:
- Growth in net interest income by 17.7% to $4.9 million compared to Q1 2022
- Growth in net financial revenue before credit losses, excluding
mark to market gain (loss) on derivative financial instrument, by
12.6% to $2.5 million compared to Q1
2022
- Decline in net finance receivables by 4.8% to $164.6 million compared to Q1 2022
- Provision for credit losses increased by 14% or $0.3 million to $2.2
million compared to Q1 2022
- Net loss before taxes of $0.5
million for the quarter ended March
31, 2023
On December 6, 2022, the Company announced
the formation of an independent committee to explore
and
evaluate potential strategic alternatives that may
be
available to the Company with the goal of maximizing
value for Cliffside shareholders and other stakeholders of the
Company. No decisions relating to any
specific potential strategic
transaction has been made and there are no assurances that any potential
strategic transaction, or transactions, will result from the
formation of the independent committee and the strategic review
process, generally.
The Company paused acquisition of new finance receivables in Q1
2023 and also announced on February 7,
2023, that it will temporarily suspend the payment of
quarterly dividends to its shareholders. This decision was made by
the Board in light of the strategic review being conducted by the
Independent Committee.
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, 2023, prepared in
accordance with International Financial Reporting Standards, as
issued by the International Accounting
Standards Board (IFRS), 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.