Fountain Asset Corp. Announces Its Financial Results for the Quarter Ended March 31, 2023
May 26 2023 - 7:30AM
Fountain Asset Corp. (TSXV:FA) (“Fountain” or the
“Company”) would like to announce its financial results for the
three months ended March 31, 2023 (“
Q1/23”).
Highlights from Q1/23:
-
Net asset value (“NAV”) of $11.68 million ($0.19
per share) at March 31, 2023 compared to $11.84 million ($0.19 per
share) at December 31, 2022, representing a flat 0.0% change
quarter over quarter on a per share basis. NAV is calculated as the
value of total assets less the value of total liabilities;
-
Net comprehensive loss of $0.18 million for the three months ended
March 31, 2023, compared to net comprehensive loss of $2.03 million
for three months ended March 31, 2022
(“Q1/22”);
-
Total gain from investment activity was $0.04 million compared to
total loss of $1.80 million for Q1/22;
-
Net realized gains on the sale of portfolio investments of $0.09
million compared to net realized losses of $0.81 million for
Q1/22;
-
Net unrealized losses on portfolio investments of $0.06 million
compared to net unrealized losses of $0.99 million for Q1/22;
-
Total expenses of $0.22 million, which included $0.03 million of
stock-based compensation, compared to $0.23 million for Q1/22 which
included $0.03 of stock-based compensation; and
-
Operating expenses of $0.18 million compared to $0.18 million for
Q1/22.
During Q1/23, the company saw a slight increase
from its portfolio of publicly traded companies, which included an
increase from Black Swan Graphene. The increases were offset by
decreases in the stock price of Hub Cyber Security.
The Company was able to maintain low operating
expenses in Q1/23 as it has done in the previous quarters, which
helped contribute to a net comprehensive loss of $0.18 million for
Q1/23 compared to net comprehensive loss of $2.03 million for
Q1/22. As at March 31, 2023, the Company’s net assets were valued
at $11.68 million or $0.19 per share compared to $11.84 million or
$0.19 per share at December 31, 2022.
“During Q1/23, the Company saw early signs of
success in its strategy to increase our exposure to the battery
metals and the energy sector. We believe that with the new
investments made this quarter in these industries Fountain has
positioned itself to realize future economic benefits that will
ensure the continued success of the Company,” said Andrew Parks,
CEO of Fountain.
A full set of the Q1/23 unaudited 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 marijuana, oil
& gas, mining, real estate, manufacturing, retail, financial
services, 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 August 17,
2022 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.
For further information: please contact Andrew
Parks at (416) 456-7019 or visit Fountain Asset Corp.'s website at
www.fountainassetcorp.com.
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