Mr. Praveen Gupta reports

CLIFFSIDE CAPITAL LTD. ANNOUNCES FISCAL 2023 FINANCIAL RESULTS

Cliffside Capital Ltd. has released financial results for the year ended Dec. 31, 2023. The company reported the following for 2023 compared with the prior year:

• Decline in gross finance receivables by 37.5 per cent to $120.9-million, with a corresponding decline in securitization and subordinated debt by 40.6 per cent to $107.5-million;
• Net financial revenue before credit losses, excluding mark to market gain (loss) on derivative financial instrument declined by 14.2 per cent to $8.4-million;
• Provision for credit losses declined by 33.9 per cent to $8.0-million;
• Net loss before taxes of $1.3-million compared with a net loss before taxes of $2.0-million for the prior year.

The acquisition of finance receivables slowed in the fourth quarter of 2022 and subsequently paused in January, 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 37.5-per-cent decline in gross finance receivables to $120.9-million and a corresponding 40.6-per-cent decline in the securitization and subordinated debt to $107.5-million compared with the prior year. This decline in gross finance receivables, together with the prevailing macroeconomic environment of high consumer debt levels, higher benchmark interest rates, higher delinquency levels and drop in used car prices, adversely impacted the company's financial results.

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 audited consolidated financial statements for the year ended Dec. 31, 2023, prepared in accordance with international financial reporting standards, as issued by the International Accounting Standards Board, 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.