TORONTO, May 29, 2019 /CNW/ - Fountain Asset
Corp. (TSXV:FA) ("Fountain" or the "Company") is pleased to
announce strong financial results for the first quarter ended
March 31, 2019 ("Q1/19").
"The Company posted another solid quarter during Q1/19 as
Fountain was able to grow its Adjusted Net Asset Value by over 10%
quarter over quarter. We continue to believe we offer a strong
value proposition for our investors by giving them a vehicle to
access early round financings that they would otherwise not have
access to." said Andrew Parks, CEO
of Fountain.
Highlights from Q1/19:
- Adjusted net asset value ("ANAV") of $40.60 million ($0.68 per share) at March
31, 2019 compared to $36.77
million ($0.63 per share) at
December 31, 2018, representing a
10.4% increase quarter over quarter on a per share basis. ANAV
reflects the net asset value plus the amount of available tax loss
pools available;
- Net comprehensive income of $3.92
million compared to a loss of $1.62
million for three months ended March
31, 2018 ("Q1/18");
- Total revenue from investment activity was $4.24 million compared to losses $1.39 million for Q1/18;
- Net realized gains on the sale of portfolio investments of
$0.32 million compared to net
realized gains of $4.45 million for
Q1/18;
- Net unrealized gains on portfolio investments of $3.13 million compared to net unrealized losses
of $5.92 million for Q1/18;
- Total expenses of $0.32 million,
which includes stock-based compensation of $0.11 million, compared to $0.23 million for Q1/18; and
- Operating expenses of $0.21
million compared to $0.23
million for Q1/18.
During the quarter, the Company saw strong positive performance
from its portfolio, driven by several private investments including
BabelBark Inc., and Wolverine Partners Corp. This was offset
by our investment in 3 Sixty Risk Solutions Ltd. For the
quarter, the Company reported total revenue of $4.24 million compared to losses of $1.39 million in the comparative
quarter.
The Company reported total expenses of $0.32 million for Q1/19 compared to $0.23 million in the prior year. Included in
total expenses for the current year was stock-based compensation of
$0.11 million. Operating expenses
decreased slightly to $0.21 million
from $0.23 million in the comparative
quarter.
The Company generated net income and comprehensive income of
$3.92 million for Q1/19 compared to a
net loss and comprehensive loss of $1.62
million for Q1/18. As at March
31, 2019, the Company's adjusted net assets were valued at
$40.60 million or $0.68 per share compared to $36.77 million or $0.63 per share at December 31, 2018.
A full set of Q1/19 unaudited financial statements and the
management 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, growing Fountain's capital base and a strong
pipeline going forward. 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.
