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TORONTO, June 30, 2022 /CNW/ – Cliffside Capital Ltd. (“Cliff” or the “Company“) (TSXV: CEP) today announced that its Board of Directors has declared a quarterly cash dividend of $0.0025 per ordinary share ( “Ordinary share” ) of the Company to pay the August 2, 2022 to holders of common shares of record on July 18, 2022. On an annual basis, the distribution represents $0.01 per ordinary share. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).
Cliffside also announces that CAR LP I (“CAR LP“), a private limited partnership in which the Company holds a majority interest, purchased for cancellation (the “Redemption“) 1,250 of the outstanding units (“Units“) of CAR LP held by certain of its limited partners, including all such units held by arm’s length parties (the “Sellers“), for an overall redemption price of $1,875,000. The purchase price per unit paid by CAR LP to the sellers was determined through arm’s length negotiations between CAR LP and the sellers.
Following the completion of the buyout, Cliffside now owns a 75% interest in CAR LP, together with CanCap Management Inc. (“CCMI“), a major consumer loan originator and servicer and non-arm’s length party to the Company, owning the remaining 25% of CAR LP. As previously disclosed, CAR LP was formed in July 2021 acquire up to approx. $180 million non-preferred consumer auto loan receivables (“NPCALR“), from time to time, ACC LP (the “VAC“), which is controlled by CCMI, pursuant to the terms of an NPCALR purchase agreement (the “purchase agreement“) concluded between CAR LP, ACC and CCMI in July 2021.
For further information regarding CAR LP, the Purchase Agreement and the financing of purchases made from time to time pursuant to the Purchase Agreement, please see the Company’s press release dated July 14, 2021 and the related material change report dated July 22, 2021.
Cliffside is focused on investing in strategic partnerships with parties that have specialized expertise and proven experience in originating and servicing loans and similar types of financial assets. Cliffside’s strategy is to generate income as an investor, providing its shareholders with the opportunity to invest in the growing alternative lending industry with the potential for attractive returns and minimal operational risk while achieving a reliable total return. For more information, see Cliffside’s filings on SEDAR at www.sedar.com.
Caution Regarding Forward-Looking Information
This press release contains certain “forward-looking statements” under applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements regarding Cliffside’s business and operations. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results to differ. and future events differ materially from those expressed or implied. by such forward-looking statements. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the results of operations; potential for conflicts of interest; and volatility in the price and volume of Cliffside’s common stock. 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.
SOURCE Cliffside Capital Ltd.
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