TORONTO, Aug. 22, 2024 /CNW/ - Cliffside Capital Ltd. ("Cliffside" or the "Company") (TSXV: CEP) is pleased to announce financial results for the second quarter of 2024. The Company reported the following:
Decline in gross finance receivables by 37.2% to $95.5 million, with a corresponding decline in securitization and subordinated debt by $41.2% to $82.2 million compared to Q2 2023
Decline in net interest and other income by 35.4% to $6.2 million, consistent with the decline in gross finance receivables compared to Q2 2023
Provision for credit losses declined by 29.7% to $3.0 million compared to Q2 2023
Net loss before taxes of $1.1 million for the six months ended June 30, 2024
The acquisition of finance receivables paused in 2023 as the Company continued to assess macroeconomic conditions and undergo a strategic review by a special committee (the "Independent Committee"). The pause in acquisitions resulted in a 37.2% decline in gross finance receivables to $95.5 million and a corresponding 41.2% decline in the securitization and subordinated debt to $82.2 million compared to the same period in the prior year. This decline in gross finance receivables together with the tough macroeconomic environment, including high consumer debt levels, higher benchmark interest rates, and higher delinquencies have adversely impacted the Company's financial results.
On July 16, 2024, the Company and Cliffside Ltd. (the "Purchaser") publicly announced that they have entered into an arrangement agreement (the "Arrangement Agreement") with CFLP Limited Partnership and LC Asset Management Corporation. Pursuant to the Arrangement Agreement, the Purchaser will acquire all of the issued and outstanding common shares (the "Common Shares") in the capital of the Company from their holders ("Shareholders") by way of a statutory plan of arrangement (the "Arrangement") for consideration of $0.10 per Common Share (the "Cash Consideration"), other ...
