Mr. Praveen Gupta reports

CLIFFSIDE CAPITAL LTD. REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

Cliffside Capital Ltd. has released financial results for the first quarter of 2023. The company reported the following:

• Growth in net interest income by 17.7 per cent to $4.9-million compared with Q1 2022;
• Growth in net financial revenue before credit losses, excluding mark to market gain (loss) on derivative financial instrument, by 12.6 per cent to $2.5-million compared with Q1 2022;
• Decline in net finance receivables by 4.8 per cent to $164.6-million compared with Q1 2022;
• Provision for credit losses increased by 14 per cent or $300,000 to $2.2-million compared with Q1 2022;
• Net loss before taxes of $500,000 for the quarter ended March 31, 2023.

On Dec. 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 have 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 Feb. 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 the Cliffside website, 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 SEDAR.

About Cliffside Capital Ltd.

Cliffside is focused on investing in strategic partnerships with parties which have specialized expertise and a proven 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.

We seek Safe Harbor.