TORONTO, April 28, 2025 (GLOBE NEWSWIRE) — Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) would like to announce its financial results for the three months ended December 31, 2024 (“Q4/24”) and for the year ended December 31, 2024 (“Fiscal 2024”).
Highlights from Q4/24:
- Net asset value (“NAV”) of $5.51 million ($0.09 per share) at December 31, 2024 compared to $5.03 million ($0.08 per share) at September 30, 2024, representing an 12.5% increase 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 income of $0.35 million for the three months ended December 31, 2024, compared to net comprehensive loss of $3.63 million for three months ended December 31, 2023 (“Q4/23”);
- Total revenue from investment activity was $0.57 million compared to total loss of $3.32 million for Q4/23;
- Net realized losses on the sale of portfolio investments of $1.81 million compared to net realized losses of $2.49 million for Q4/23;
- Net unrealized gains on portfolio investments of $2.37 million compared to net unrealized gains of $0.83 million for Q4/23;
- Total expenses of $0.22 million, which included $0.03 million of stock-based compensation, compared to $0.31 million for Q4/23 which included $0.02 of stock-based compensation; and
- Operating expenses of $0.22 million compared to $0.29 million for Q4/23.
Highlights from Fiscal 2024:
- NAV of $5.51 million ($0.09 per share) at December 31, 2024 compared to $6.66 million ($0.11 per share) at December 31, 2023, representing a 18% decrease year over year on a per share basis;
- Net comprehensive losses of $1.30 million compared to net comprehensive losses of $5.26 million for the year ended December 31, 2023 (“Fiscal 2023”);
- Total losses from investment activity was $0.41 million compared to losses of $4.40 million for Fiscal 2023;
- Net realized losses on the sale of portfolio investments of $1.89 million compared to net realized losses of $4.40 million for Fiscal 2023;
- Net unrealized gains on portfolio investments of $1.47 million compared to net unrealized losses of $0.03 million for Fiscal 2023;
- Total expenses of $0.89 million, which included stock-based compensation of $0.05 million, compared to $0.86 million for Fiscal 2023, which included $0.08 million of stock-based compensation; and
- Operating expenses of $0.87 million compared to $0.82 million for Fiscal 2023.
During 2024, the Company continued to dispose of non-core investment holdings that have been underperforming in recent years in order to generate proceeds to capitalize on new investment opportunities that Fountain believes will ultimately yield greater long term economic benefits for the Company and its shareholders.
“During Q4/24, Fountain continued to focus on reducing operating expenditures to improve the Company’s financial position and capitalize on investment opportunities. The Company strengthened its public company investment portfolio with significant investments made in companies involved in junior resources and mining sectors. As a result of these promising investments, Fountain was able to recognize an increase in the valuation of its public company holdings of approximately 24% compared to the previous year. The Company has seen many promising opportunities come its way and is optimistic about the potential returns that Fountain could realize within the coming year,” said Andrew Parks, CEO of Fountain.
A full set of the 2024 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 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.sedarplus.ca. 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.
