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TORONTO, April 25, 2024 (GLOBE NEWSWIRE) — Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) wishes to announce its financial results for the three months ended December 31, 2023 (“Q4/23“) and for the fiscal year ending December 31, 2023 (“Fiscal year 2023“).
Highlights from Q4/23:
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Highlights from the 2023 financial year:
- Net asset value of $6.66 million ($0.11/share) as of December 31, 2023 compared to $11.84 million ($0.19/share) as of December 31, 2022, representing a year-over-year decline of 42% per share;
- Net Comprehensive Losses of $5.26 million compared to Net Comprehensive Losses of $8.51 million for the year ended December 31, 2022 (“Fiscal year 2022”);
- Total losses from investing activities were $4.40 million, compared to losses of $7.18 million in fiscal 2022;
- Net realized losses on sales of portfolio investments of $4.40 million compared to net realized losses of $5.68 million in fiscal 2022;
- Net unrealized losses on portfolio investments of $0.03 million compared to net unrealized losses of $1.53 million for fiscal 2022;
- Total expenses of $0.86 million, including foreign exchange loss of $0.01 million and stock-based compensation of $0.08 million, compared to fiscal 2022 foreign exchange gains of $1.37 million of $0.04 million and included stock-based compensation of $0.13 million; And
- Operating expenses of $0.82 million compared to $0.88 million in fiscal year 2022.
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Throughout 2023, the Company continued to divest non-core holdings that have struggled in recent years in order to generate proceeds to pursue new investment opportunities that Fountain believes will ultimately provide greater long-term economic benefits to the Company and its shareholders will bring.
The Company continued to maintain low operating costs in the fourth quarter of 2023, which helped reduce the Company’s overall net loss. As of December 31, 2023, the Company’s net assets were $6.66 million, or $0.11 per share, compared to $11.84 million, or $0.19 per share, as of December 31, 2022 .
“In fiscal 2023, Fountain continued to focus on its growth-oriented objectives by exiting non-core portfolio investments and pursuing investment opportunities in sectors that the company believes will experience rapid growth. While the Company recorded additional losses from the sale of investments in the fourth quarter of 2023, Fountain believes that the divestiture of these investments was necessary for the Company to reposition itself and benefit from market trends. As the Company continues to add new investments to its portfolio, we believe Fountain will generate returns on these investments that will help strengthen the Company’s financial strength in 2024,” said Andrew Parks, CEO of Fountain.
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A complete set of the 2023 audited financial statements and management’s discussion and analysis are available on SEDAR+.
About Fountain Asset Corp.
Fountain Asset Corp. is a commercial bank that provides equity financing, bridging loan services (asset-back/collateralized financing) and strategic financial advisory services to companies in many industries such as marijuana, oil and gas, mining, real estate, manufacturing, retail, etc. Financial Services and Biotechnology.
Forward-Looking Statements
Certain information contained in this press release constitutes forward-looking information, meaning information about possible events, conditions or operating results of the Company that is based on assumptions and courses of action and is inherently uncertain. All information other than historical facts may constitute forward-looking information. Forward-looking information in this press release includes, but is not limited to, Fountain’s growing capital base and strong pipeline going forward. These forward-looking statements reflect the Company’s current expectations or beliefs based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements, even if such actual results are realized or substantially realized There is no guarantee that they will have the expected consequences or impact on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: the amount of bridge loans and equity investments completed, the nature and credit quality of collateral, and the nature and quality of equity investments, among others Risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s Annual Information Form dated August 17, 2022 filed on SEDAR+ at www.sedarplus.ca. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any intention or obligation to update any forward-looking statement as a result of new information, except as required by applicable securities laws, future events or results or otherwise. Although the Company believes that the assumptions contained in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on such statements due to the uncertainty involved.
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.
For more information, please contact Andrew Parks at (416) 456-7019 or visit the Fountain Asset Corp website. at www.fountainassetcorp.com.
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