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.
CFO Transition
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.
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.
