Fountain Asset Corp. Announces Its Financial Results for the Year Ended December 31, 2015

May 02, 2016 8:00 AM EDT | Source: Fountain Asset Corp.

Toronto, Ontario--(Newsfile Corp. - May 2, 2016) - Fountain Asset Corp. (TSXV: FA) ("Global Capital") announces its financial results for the year ended December 31, 2015.

Highlights from 12 Month period ending December 2015:

  • Net comprehensive loss for the twelve month period of $4.5 million;
  • $4.0 million of the $4.5 million loss is attributed to unrealized losses from the portfolio of public companies as a result of negative north American stock markets conditions in late 2015;
  • Recurring revenue from interest and advisory fees was of $980,000, an increase of approximately 153% over the previous year.

During the second half of 2015, the overall weakness in the Canadian public markets saw the Company's public portfolio negatively impact its overall 2015 results. The Company reported net comprehensive losses of $4.5 million for the year-ended December 31, 2015. The losses are born primarily from $4.0 million in unrealized losses in its public investments portfolio.

It is important to note that majority of losses from 2015 are unrealized, and management believes Fountain's public portfolio is well positioned to perform well in the latter half of 2016.

In addition, Fountain's management has continued to ramp up the 'active investor' strategy whereby Fountain involves itself in the operations of portfolio companies in return for fees and equity upside potential. This strategy contributed to nearly $1 million in fees and interest (153% growth year over year) in 2015, and management believes this strategy will continue to provide steady income in the coming years.

Jason Ewart, CEO of Fountain Asset Corp. stated "Despite the public markets preforming poorly in the second half of 2015, Fountain was able to maintain its position in all of its strategic holdings, and effectively support itself by the recurring cash flows of its private investments." Jason added, "Management expects 2016 to show improved performance in our public company portfolio holdings and as a result, provide accretive results to Fountain."

2015 Audited Financial Statements and MD&A

A full set of the 2015 audited 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 oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Fountain Asset Corp.'s website at www.fountainassetcorp.com.

Forward-Looking Information

These materials include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Other than statement of historical fact, all statements in this material, including, without limitation, statements regarding fair values of marketable securities, investments, bridge loans, convertible debentures, estimated asset retirement obligations, and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of these materials. Important factors that could cause actual results to differ materially from the Company's expectations include, without limitation, the level of bridge loans completed, the nature and credit quality of the collateral security, the sufficiency of cost estimates for remaining reclamation obligations as well as those factors discussed in the Company's documents filed from time to time with the TSX Venture Exchange, Canadian securities regulators and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

Neither TSX Venture Exchange 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.  

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