TORONTO, Aug. 28, 2018 /CNW/ - Fountain Asset
Corp. (TSXV:FA) ("Fountain" or the "Company") is pleased to
announce its financial results for the second quarter ended
June 30, 2018.
Highlights from the Q2 ending June 30,
2018:
- Total revenue from investment activity increased to
$4.6 million compared to losses of
$0.4 million in Q2/17;
- Net realized gains on the sale of portfolio investments of
$2.1 million compared to net realized
gains of $0.1 in Q2/17;
- Net unrealized gains on portfolio investments of $2.3 million compared to net unrealized losses of
$1.1 million in Q2/17;
- Total expenses decreased to $0.38
million from $0.42 million in
Q2/17;
- Net income increased to $4.2
million ($0.07/share) compared
to a net loss of $0.9 million
($0.02/share) in Q2/17; and
- Adjusted net asset value ("NAV") was $30.6 million ($0.53/share) at June 30,
2018 compared to $25.5 million
($0.47/share) at December 31, 2017.
For the quarter ended June 30,
2018, the Company reported net income of $4.2 million compared to a net loss of
$0.9 million in the quarter ended
June 30, 2017. The current quarter
net income was primarily attributable to gains on investment
activity which included net realized gains on the sale of portfolio
investments $2.1 million as well as
net unrealized gains on portfolio investments of $2.3 million.
As at June 30, 2018, the Company's
Adjusted NAV per share was $0.53
compared to $0.47 at the end of
December 31, 2017. This 12%
increase was mainly due the gains on portfolio investments offset
by a further reduction in available tax losses as we continued to
realize gains on our portfolio.
"The second quarter was a success as a key investment in a
private company began trading publicly as expected. We
continue to believe that Fountain has a solid pipeline of private
investments that will go public during the second half of the
year," said Andrew Parks, CEO of
Fountain.
CFO Appointment
Fountain has appointed Mr. Michael
Leskovec as Chief Financial Officer after concluding its
search. Mr. Leskovec was appointed as Interim Chief Financial
Officer of the Company on April 30,
2018.
"Mr. Leskovec brings valuable industry experience that will help
guide the growth of our company going forward," CEO Andrew Parks said.
A full set of the Q2 2018 unaudited financial statements and the
related management's discussion & analysis are available on
SEDAR.
About Fountain Asset Corp.
Fountain Asset Corp. is a merchant bank which provides equity
financing, bridge loan services (asset back/collateralized
financing) and strategic financial consulting services to companies
across many industries such as marijuana, oil & gas, mining,
real estate, manufacturing, retail, financial services, blockchain
technology and biotechnology.
Forward-Looking Statements
Certain information contained in this press release constitutes
forward-looking information, which is information relating to
possible events, conditions or results of operations of the
Company, which are based on assumptions and courses of action and
which are inherently uncertain. All information other than
statements of historical fact may be forward-looking information.
Forward-looking information in this press release includes, but is
not limited to, expectations of private companies going public
during the second half of the year. These forward-looking
statements reflect the current expectations or beliefs of the
Company based on information currently available to the Company.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, among other things:
the level of bridge loans and equity investments completed, the
nature and credit quality of the collateral security and the nature
and quality of equity investments, and the other risks disclosed
under the heading "Risk Factors" and elsewhere in the Company's
annual information form dated December 22, 2017 filed on
SEDAR at www.sedar.com. Any forward-looking statement speaks
only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company disclaims any
intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions
inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance
and accordingly undue reliance should not be put on such statements
due to the inherent uncertainty therein.
Neither TSX Venture Exchange Inc. 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 Fountain Asset Corp.
