TORONTO, Dec. 18,
2023 /CNW/ - Chesswood Group Limited ("Chesswood" or
the "Company") (TSX: CHW) today announced that a dividend in an
amount of one cent ($0.01) per share has been declared for the month
of December, payable on January 15,
2024, to shareholders of record at the close of business on
December 29, 2023.
Chesswood advises that the dividend declared for the month
ending December 31, 2023 will be an
eligible dividend for the purposes of the Income Tax Act
(Canada) and any similar
provincial legislation.
As noted in the Company's news release announcing the dividend
for August, the actions by central banks to significantly raise
interest rates has affected the business climate generally and has
temporarily compressed our net interest margins. As contemplated in
that news release, management and our directors conducted a
thorough evaluation of our portfolio performance and various
interest rate scenarios on our profitability and in September
concluded that a temporary adjustment to our monthly dividend rate
(from $0.05 to $0.01 per share) was warranted in order to
proactively address this period of macroeconomic uncertainty.
Although it is expected that interest rates have peaked and that
central banks may begin to decrease interest rates in 2024,
management and our directors continue to evaluate portfolio
performance, the general business climate and the importance of
maintaining sufficient liquidity to not only comply with our
financing facilities requirements but also to take advantage of
growth and strategic opportunities should they be available. This
may result in a determination in the near term to temporarily
suspend dividends.
ABOUT CHESSWOOD GROUP LIMITED
Chesswood Group Limited is a Toronto,
Canada based holding company whose subsidiaries engage in
the business of specialty finance (including equipment finance
throughout North America and
vehicle finance and legal sector finance in Canada), as well as the origination and
management of private credit alternatives for North American
investors. Our shares trade on the Toronto Stock Exchange (under
the symbol CHW).
For information on Chesswood Group Limited and its operating
subsidiaries:
www.ChesswoodGroup.com
www.PawneeLeasing.com
www.TandemFinance.com
www.VaultPay.ca
www.VaultCredit.com
www.Rifco.net
www.WaypointInvestmentPartners.com
www.EasyLegal.ca
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN
SOURCE Chesswood Group Limited