TORONTO, April 25,
2023 /CNW/ - Cliffside Capital Ltd.
("Cliffside" or the "Company") (TSXV: CEP) is pleased
to announce financial results for the year ended December
31, 2022. The Company reported the following for 2022
compared to the prior year:
- Growth in net finance receivables by 23.5% to $185.0 million;
- Growth in interest income by 45.3% to $19.0 million;
- Net financial revenue before credit losses, excluding mark to
market gain on derivative financial instruments, increased by 34.9%
to $9.8 million;
- Provision for credit losses increased by $8.1 million to $12.1
million, including $2.1
million on stage 1 receivables; and
- Net loss before taxes of $2
million was recorded for the current 2022, primarily driven
by higher provision for credit losses.
On December 6, 2022, the Company
announced the formation of an independent committee (the
"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. These alternatives may include, but are not limited to, a
sale of all or a portion of the common shares in the capital of the
Company, a sale of all or a portion of the assets of the Company,
new debt or equity financings, a strategic investment in the
Company or other strategic transaction structures
(collectively, "Potential Strategic
Transactions"). The Independent Committee has been empowered with
a broad mandate to lead the process in connection with the review
of Potential Strategic Transactions, including engaging necessary
professional advisors. The Independent Committee will manage any
expressions of interest relating to any proposed Potential
Strategic Transactions that may be forthcoming and will work with
professional advisors to assess the fairness of Potential Strategic
Transactions to shareholders and other stakeholders and make
recommendations to the Company's board of directors in respect of
all such matters.
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 audited
consolidated financial statements for the year-ended December 31, 2022, prepared in accordance with
International Financial Reporting Standards, 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.
