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CLIFFSIDE CAPITAL LTD. REPORTS STRONG NET INCOME IN FIRST QUARTER OF 2018
TORONTO, May 18, 2018 – Cliffside Capital Ltd. (“Cliffside”) (TSXV:CEP) is pleased to report results for the first quarter ended March 31, 2018.
In the first quarter of 2018, Cliffside acquired automobile loans with principal outstanding of $13 million resulting in growth in consolidated assets of 11% from December 31, 2017 to March 31, 2018.
Cliffside reported net income before taxes of $667,750 for the three months ended March 31, 2018, up from net loss before taxes of $342,903 for the three months ended March 31, 2017. The increase of $1 million in net income before taxes is primarily a result of a $795,332 one-time gain on re-measurement of the deferred purchase price payable, as well as higher net financial income driven by growth in assets.
The one-time gain of $795,332 resulted from negotiating new terms for the continued acquisition of loans. The new terms change the deferred purchase price for the loans by reducing the fixed monthly percentage and introducing a new contingent component of the deferred purchase price which is linked to future net income and is payable annually.
To date, Cliffside has invested $3.9 million in two limited partnerships, each of which invests in fully serviced non-prime automobile loans which are funded through facilities with institutional lenders.
Further information on Cliffside’s March 31, 2018 financial results are available on SEDAR at www.sedar.com.
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. 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; as well as volatility of Cliffside’s 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.
For further information, contact:
Yazdi Bharucha, CFO
Phone: (647) 226-4894