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Fountain Asset Corp. Announces Financial Results for the Second Quarter 2019

TORONTO , Aug. 28, 2019 /CNW/ - Fountain Asset Corp. (FA.V) ("Fountain" or the "Company") is pleased to announce financial results for the second quarter ended June 30, 2019 ("Q2/19").

"The Company posted a decline in Adjusted Net Asset Value quarter over quarter during Q2/19.  The decline was driven by weakness in the cannabis sector," said Andrew Parks , CEO of Fountain.

Highlights from the three months ended June 30, 2019 :

  • Adjusted net asset value ("ANAV") of $37.56 million ( $0.63 per share) at June 30, 2019 compared with $40.60 ( $0.68 per share) at March 31, 2019 , representing a 7.4% decrease quarter over quarter on a per-share basis. ANAV reflects the net asset value plus the amount of available tax loss pools available;
  • Net comprehensive loss of $3.04 million compared to income of $4.19 million for three months ended June 30, 2018 ("Q2/18");
  • Total losses from investment activity was $2.65 million compared to revenue of $4.57 million for Q2/18;
  • Net realized gains on the sale of portfolio investments of $1.26 million compared to net realized gains of $2.05 million for Q2/18;
  • Net unrealized losses on portfolio investments of $4.15 million compared to net unrealized gains of $2.35 million for Q2/18;
  • Total expenses of $0.39 million , including stock-based compensation of $0.09 million , compared to $0.38 million , including stock-based compensation of $0.13 million , for Q2/18; and
  • Operating expenses of $0.29 million compared to $0.25 million for Q2/18.


Highlights from the six months ended June 30, 2019 :

  • ANAV of $37.56 million ( $0.63 per share) at June 30, 2019 compared to $36.77 million ( $0.63 per share) at December 31, 2018 , representing no increase year to date on a per share basis;
  • Net comprehensive income of $0.89 million compared to $2.57 million for the six months ended June 30, 2018 ;
  • Total revenue from investment activity decreased to $1.59 million compared to $3.18 million for the six months ended June 30, 2018 ;
  • Net realized gains on the sale of portfolio investments of $1.58 million compared to net realized gains of $6.50 million for the six months ended June 30, 2018 ;
  • Net unrealized losses on portfolio investments of $1.01 million compared to net unrealized losses of $3.57 million for the six months ended June 30, 2018 ;
  • Total expenses of $0.70 million , including stock-based compensation of $0.20 million , compared to $0.61 million , including stock-based compensation of $0.13 million , for the six months ended June 30, 2018 ; and
  • Operating expenses of $0.50 million compared to $0.48 million for the six months ended June 30, 2018 .


During the quarter, the Company saw a decline in performance from its portfolio driven by investments in Green Growth Brands and 3 Sixty Risk Solutions Ltd.  This was offset by gains on our investment in HTC Purenergy.

A full set of Q2/19 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, blockchain technology and biotechnology.

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.


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