FOUNTAIN ASSET CORP. ANNOUNCES ITS FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2016May 1, 2017, Toronto, Canada – Fountain Asset Corp. (FA:TSXV) (“Fountain”) announces its financial results for the year ended December 31, 2016.
Highlights from the 12 month period ending December 31, 2016:
• Twelve month revenue of $1,990,350 million;
• Net comprehensive income for the twelve month period of $2,063,648 ($0.04 per share);
• Increase of adjusted book value per share to $0.32;
• Transformation into IFRS reporting standards as an Investment Entity in order to provide improved financial statement presentation.
During 2016, the Company saw positive performance from its portfolio of publicly traded companies as well as growth milestones achieved by its private company investments. For the year ended December 31, 2016, the Company reported total revenue of $2 million compared to ($2.3 million) in the prior year. For the year the Company reported total expenses of $1.1 million compared to $2.4 million in the prior year. The Company’s effort resulted in net comprehensive income of $2 million in 2016 compared to a net comprehensive loss of $4.5 million in 2015. As at December 31, 2016, the Company’s adjusted net assets were valued at $17.2 million or $0.32 per share compared to $16.5 million or $0.31 per share at the end of the third quarter in 2016.
Jason Ewart, CEO of Fountain Asset Corp. stated “The Company posted record revenue and profit in 2016, while we continued to make significant investments for future growth. He added “We look forward to showing our continued growth momentum for the first quarter of 2017 which we will publish in May.”
2016 Audited Financial Statements and MD&A
A full set of the 2016 audited financial statements and the Management Discussion & Analysis are available on SEDAR.
Subsequent Events to the end of 2016:
On March 17, 2017, Fountain announced that its client company, Xylitol Canada Inc. (XYL:TSXV) (“XYL” or “Xylitol”), closed a $2,087,000 million equity raise at a price of $0.12 per share. Xylitol also announced that it closed its acquisition of Nektar Naturals Holdings, Inc., a natural sweetener company offering products made from natural honey.
On March 23, 2017, Fountain announced that its investee company, The Hydropothecary Corporation (“THC”), had completed its Qualifying Transaction with BFK Capital Corp. (“BFK”), a Capital Pool Company, and is listed on the TSX Venture Exchange. The trading symbol is “THCX”. The Hydropothecary Corporation is licensed under the Access to Cannabis for Medical Purposes Regulations to cultivate and sell marijuana seeds and plants and dried marijuana product and to produce marijuana oils, marijuana resins and fresh marijuana products from its facilities located in Gatineau, Québec. Fountain owns 2,000,000 shares of THC with a weighted average cost of $0.62 per share in addition to 570,000 options with an exercise price of $0.75 per option.
On April 28, 2017, Fountain’s client company, Advantagewon Oil Corp. (“AOC”) filed a non-offering prospectus as part of their process for a public listing on the Canadian Stock Exchange (the “CSE”) which is expected to be completed in the second quarter of 2017.
Advantagewon Oil Corp. is a Texas based oil production company.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable Canadian securities laws including statements related to the Company’s investee companies and the Company’s growth momentum Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, those factors, discussed in detail in the Company’s Management Discussion and Analysis and other public filings which can found at www.sedar.com.
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 .