TORONTO, May 29, 2018 /CNW/ - Fountain Asset
Corp. (TSXV:FA) ("Fountain" or the "Company") is pleased to
announce its financial results for the first quarter ended
March 31, 2018.
Highlights from the Q1 ending March
31, 2018:
- Total revenue from investment activity decreased to losses of
$1.4 million compared to revenue of
$1.0 million in Q1/17;
- Net realized gains on the sale of portfolio investments of
$4.4 million compared to $nil in
Q1/17;
- Net unrealized losses on portfolio investments of $5.9 million compared to net unrealized gains of
$0.7 million in Q1/17;
- Total expenses decreased to $0.2
million from $0.3 million in
Q1/17;
- Net income decreased to a loss of $1.6
million ($0.03/share) compared
to net income of $0.7 million
($0.01/share) in Q1/17; and
- Adjusted net asset value ("NAV") was $25.3 million ($0.45/share) at March 31,
2018 compared to $25.5 million
($0.47/share) at December 31, 2017.
For the quarter ended March 31,
2018, the Company reported a net loss of $1.6 million compared to net income of
$0.7 million in the quarter ended
March 31, 2017. The current quarter
net loss was primarily attributable to losses on investment
activity of $1.4 million, which
included net realized gains on the sale of portfolio investments
$4.4 million offset by net unrealized
losses on portfolio investments of $5.9
million.
As at March 31, 2018, the
Company's Adjusted NAV per share was $0.45 compared to $0.47 at the end of December 31, 2017. The decline was mainly
due the unrealized losses in the quarter combined with the
reduction in available tax losses.
"The first quarter was challenging as the market environment for
small cap companies softened at the beginning of the
year. However, we made several key investments in private
companies that we expect to begin trading publicly within the next
quarter or two" said Andrew Parks,
CEO of Fountain.
A full set of the Q1 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
within the next quarter or two. 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.