TORONTO, April 30, 2018 /CNW/ - Fountain Asset Corp. (TSXV:FA) ("Fountain" or the "Company") is pleased to announce its financial results for the quarter and year ended December 31, 2017.
Highlights from the Q4 ending December 31, 2017:
- Total revenue of $3.62 million compared to $0.06 million in Q4/16
- Net comprehensive income for the quarter of $4.62 million ($0.09 per share)
- Adjusted book value increased to $0.47 from $0.38 at the end of Q3 2018. This represents a 23.4% increase quarter over quarter.
Highlights from the twelve months ending December 31, 2017:
- Twelve-month total revenue of $5.05 million compared to $1.99 million in 2016
- Net comprehensive income for the twelve-month period of $8.12 million ($0.15 per share) compared to $2.06 million ($0.04 per share) in 2016
- Adjusted book value increased 46% to $0.47 from $0.32 at the end of 2016;
During 2017, the Company saw robust positive performance from its portfolio of publicly traded companies. Furthermore, several of Fountain's private investments went public during the year including Advantagewon Oil Corp (CSE:AOC). For the year ended December 31, 2017, the Company reported total revenue of $5.05 million compared to $1.99 million in the prior year.
For the year the Company reported total expenses of $1.78 million compared to $1.15 million in the prior year. The year-end expenses were higher due to the continued legal expenses revolving the Company's litigation with First Global Data. Furthermore, there was an increase in payroll expense with the payment of a retirement allowance to the former CEO.
The Company generated net comprehensive income of $8.12 million in 2017 compared to a net comprehensive income of $2.06 million in 2016. As at December 31, 2017, the Company's adjusted net assets were valued at $25.54 million or $0.47 per share compared to $17.18 million or $0.32 per share at the end of 2016.
"The Company posted solid revenue and profit in Q4 and Full Year 2017. We continued to make investments that we believe will help grow Fountain's capital base. We are extremely excited about our portfolio of investments and our strong pipeline going forward. Fountain is allowing investors to gain access to early round financings that they otherwise could not." said Andrew Parks, CEO of Fountain.
A full set of the 2017 audited financial statements and the Management Discussion & Analysis are available on SEDAR.
On March 14, 2018, Fountain announced that Mr. David Darakjian, Chief Financial Officer of the company had tendered his resignation. Mr. Darakjian's last day will be April 30, 2018. Mr. Parks commented "I wanted to thank David again and wish him the best of luck on his new endeavors."
Fountain would like to announce that the Company has appointed Mr. Mike Leskovec as Interim Chief Financial Officer. Mr. Leskovec is a Chartered Professional Accountant with over sixteen years of financial experience with publicly listed companies and capital markets. He currently serves as the Chief Financial Officer of Nighthawk Gold Corp. (TSX:NHK) and as a Vice-President of Northfield Capital Corporation (TSXV:NFD/A), where he has gained experience working with publicly listed companies, assisting with investment analysis, financings, corporate structuring and go public transactions in Canada. Mr. Leskovec earned his Chartered Professional Accountant, Chartered Accountant (CPA, CA) designation while working in the audit and assurance practice for Smith Nixon LLP and has his Honours Bachelor of Accounting (BAcc) Degree from Brock University.
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.
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.
For further information: Andrew Parks at (647) 344-4429 or visit Fountain Asset Corp.'s website at www.fountainassetcorp.com.