Mr. Praveen Gupta reports

CLIFFSIDE CAPITAL LTD. REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

Cliffside Capital Ltd. has released financial results for the third quarter of 2023. The company reported the following for the nine months ended Sept. 30, 2023:

• Net loss before taxes of $370,000 compared with a net loss before taxes of $440,000 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 per cent to $6.7-million;
• Provision for credit losses declined by 31.0 per cent to $5.7-million whereas the allowance for credit losses as a percentage of gross finance receivables remained relatively consistent compared with Dec. 31, 2022 (4.47 per cent versus 4.39 per cent as at Dec. 31, 2022);
• General and administrative expenses declined by 77.3 per cent to $400,000 due to one-time financing costs relating to securing financing 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 pause in acquisitions resulted in a 30.5-per-cent decline in gross finance receivables to $134.7-million and a corresponding 32.3-per-cent decline in the securitization and subordinated debt to $121.7-million compared with the same period in the prior year.

The independent committee, composed of independent members of the board of directors of the company, with the assistance of outside financial and legal advisers, 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 the Cliffside website, and a copy of the condensed consolidated financial statements for the quarter ended Sept. 30, 2023, prepared in accordance with international financial reporting standards, as issued by the International Accounting Standards Board, 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.