Corporate Update /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
TORONTO, Oct. 25, 2021 /CNW/ - Cliffside Capital Ltd. ("Cliffside" or the "Company") (TSXV: CEP) is pleased to announce that it has received funding facility renewals from two of its existing third-party lenders for up to $85 million. The renewal terms & rates are more favorable to the Company than those previously in effect under the terms of the Company's existing security and loan agreements with the lenders in question. Cliffside may draw down on these facilities from time to time to finance the purchase of non-prime auto loan receivables that meet certain criteria approved by the lenders. Access to strong and stable funding with appropriate pricing is key to Cliffside's objective of continued growth of quality assets under administration. These facility renewals compliment the Company's recently announced new credit facility with $180 million annual financing capacity, bringing total funding availability, until the next renewal of facilities, to $265 million. Prior to the renewal of these two funding facilities, approximately $300 million of non-prime auto loan receivables had been securitized under these since 2017.
Cliffside is also pleased to announce that it has engaged the services of Independent Trading Group ("ITG") Inc. to provide market-making services in accordance with applicable policies of the TSX Venture Exchange (the "TSX-V"). ITG will trade common shares of the Company on the TSX-V and other trading venues with the objective of maintaining a reasonable market and improving the liquidity of the Company's common shares.
Under the agreement, ITG will receive compensation of $5,000 per month, payable in advance. The agreement is for an initial term of three months and will renew for additional one-month terms unless terminated. The agreement may be terminated by either party with 30 days' notice. There are no performance factors contained in the agreement and ITG will not receive shares or options as compensation. ITG and Cliffside are unrelated and unaffiliated entities and at the time of the agreement neither ITG nor its principals have an interest, directly or indirectly, in the securities of Cliffside.
Further information on Cliffside can be found at www.cliffsidecapital.ca.