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by Stockwatch Business Reporter

The TSX Venture Exchange rose a fraction to 534.31 Thursday. Two capital pool shells have announced plans for their qualifying transactions: Michael Stein's halted Cliffside Capital Ltd. (CEP) and Charles Shin's suspended Gulfstream Acquisition 1 Corp. (GFL).

Mr. Stein's Cliffside Capital will acquire an 85-per-cent interest in an Ontario limited partnership that holds $3.5-million of car loans. The shell will pay $3-million in cash to AutoCapital Canada Management Inc., which will control the remaining 15 per cent of the LP. Cliffside had a working capital of $4.6-million on Sept. 30, 2015. It aims to become an investment issuer and will acquire more loans later on.

AutoCapital lends money to high-risk borrowers who do not qualify for car loans from large banks. It is owned by Mr. Stein and Lawrence Zimmering, who each hold 50 per cent. Mr. Stein, the chairman of both AutoCapital and Cliffside Capital, will continue as the chairman of the resulting issuer. He is also the chairman of Canadian Apartment Properties REIT (CAR: $28.80) and of property developer MPI Group Inc. Mr. Zimmering, who sits on fewer chairs, is the chief executive officer of AutoCapital. He is an ecologist and regional planner, and was a head of regional engineering operations at SNC-Lavalin Group Inc. (SNC: $42.53). He was also the president of business process outsourcing company Resolve Business Outsourcing Income Fund, which was spun out of FirstService Corp. (FSV: $51.98) and then later acquired by Davis + Henderson Income Fund (now DH Corp. (DH: $37.48)).

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