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TORONTO, April 21, 2017 /CNW/ - Cliffside Capital Ltd. ("Cliffside") (TSXV:CEP) is pleased to announce that CAL LP, a limited partnership in which Cliffside holds an 85% interest, has entered into a funding facility with a Canadian Life Insurance Company. The facility provides CAL LP with access to a secured financing line of credit of $6 Million and $50 Million in funding for the ongoing monetization of fully serviced automobile loans owned by CAL LP. This follows Cliffside's January 2017 announcement that a limited partnership in which Cliffside holds a 60% interest entered into a facility with a Canadian Schedule 1 Bank. Together the two facilities provide access to $100 Million in funding for the ongoing monetization of automobile loans owned by the limited partnerships, further enabling the generation of leverage on Cliffside's invested capital in the limited partnerships and ultimate growth in returns consistent with Cliffside's strategy. CAL LP also entered into an arrangement with AutoCapital Canada Management Inc. for the acquisition from time to time of fully serviced automobile loans originated and serviced in Canada that satisfy prescribed investment criteria.
Cliffside is focused on investing in strategic partnerships with third 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 dividend yields and minimal operational risk while earning a reliable total return. For more information, see Cliffside's management information circular dated May 25, 2016 filed 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.
SOURCE Cliffside Capital Ltd.
For further information: Yazdi Bharucha, CFO, (647) 226-4894, [email protected]