TORONTO, Nov. 28, 2023 /CNW/ - Cliffside Capital
Ltd. ("Cliffside" or the "Company") (TSXV: CEP)
is pleased to announce financial results for the third quarter of
2023. The Company reported the following for the nine months ended
September 30, 2023:
- Net loss before taxes of $0.37
million compared to a net loss before taxes of $0.44 million for the same period prior year
- Net financial revenue before credit losses, excluding mark to
market gain (loss) on derivative financial instrument declined by
7.0% to $6.7 million
- Provision for credit losses declined by 31.0% to $5.7 million whereas, the allowance for credit
losses as a percentage of gross finance receivables remained
relatively consistent compared to December
31, 2022 (4.47% versus 4.39% as at December 31, 2022)
- General and administrative expenses declined by 77.3% to
$0.4 million due to one-time
financing costs relating to securing funding facilities for CAR LP
I in Q3 2021 being fully amortized as at June 30, 2022
The acquisition of finance receivables slowed in the fourth
quarter of 2022 and subsequently 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 30.5% decline in gross finance
receivables to $134.7 million and a
corresponding 32.3% decline in the securitization and subordinated
debt to $121.7 million compared to
the same period in the prior year.
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
September 30, 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.
