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Private Placement: Cliffside Capital (TSXV:CEP)

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Cliffside Capital is looking to raise gross proceeds of up to $4.5 million from the private placement of up to 22.5 million units priced at $0.20 per unit. The units consist of 1 share and one-quarter of a warrant, with each full warrant exercisable at $0.20 for 36 months.

Additional Information:

Company: Cliffside Capital
Website: http://www.CliffsideCapital.ca
Stock Symbol: TSXV: CEP
Date Published: Jun 14, 2021
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Cliffside Capital has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $4.5 million from the placement of up to 22.5 million units priced at $0.20 per unit.

The units consist of 1 share and one-quarter of a warrant, with each full warrant exercisable at $0.20 for 36 months.

The shares are currently trading at $0.095.

Insiders have agreed to subscribe to approximately $2 million of the offering.

The company plans to use approximately $3.75 million of the net proceeds to create and fund a new Ontario-registered, special purpose private partnership called "C.A.R. LP I".

Cliffside, together with CanCap Management Inc., a leading consumer loan originator and servicer, intends to use the LP to acquire up to $180 million of non-prime consumer auto loan receivables.

The company also intends to secure a senior debt and mezzanine debt facility to further fund the LP’s operations as well as assist the LP in raising approximately $2.5 million in additional private placement equity directly into the LP.

CanCap Management has conditionally agreed to fund $1.25 million.

Cliffside focuses 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.
To date, Cliffside has invested $6.7 million in two limited partnerships, each of which invests in fully serviced non-prime automobile loans and are funded through facilities with institutional lenders.
The company recently reported net income of $700,000 for the first quarter ended March 31, 2021.

Steve Malone, CEO, stated: "I am very pleased with our first quarter 2021 results despite the COVID-19 related challenges. Net income, year-over-year, improved significantly, and we are happy with the continued strength of our limited partnerships' performances. We are well positioned for the rest of fiscal 2021 and remain focused on acquiring assets with strong risk-adjusted returns to drive long-term value for our shareholders."

For more information, please visit the company’s website at www.CliffsideCapital.ca, or email info@CliffsideCapital.ca.

I’m Megan Edwards for Investmentpitch Media