TORONTO, ONTARIO – Fountain Asset Corp. (the “Company”) (TSX Venture Exchange “FA”) announces its financial results for the third quarter ending September 30, 2015.
Third Quarter Financial Results and Management’s Comments
For the quarter ended September 30, 2015, the Company reported a total loss of $3.9 million compared to net income of $0.2 million in the similar period last year. The majority of the Company’s loss is attributed to unrealized losses from its investments in public companies of $3.5 million. As a comparable, the TSXV composite index was down by 21.9% and the TSX decreased 8.8% in the three months ending September 30, 2015. Recurring revenue from interest and fees was $0.3 million this quarter, up by approximately 87% over the same quarter of previous year. Increasing recurring revenue was a key management focus in order to ensure that recurring revenues will be able to offset overhead expenses as the Company positions itself to realize gains on its public company investments. The Company continues to have a strong balance sheet and capital to deploy for financial transactions.
Jason Ewart, the CEO of Fountain stated “During the third quarter, global stock markets saw negative performances across the board and Fountain’s portfolio of public companies saw similar results. This ended Fountain’s string of five straight quarters of positive earnings. In each case with our portfolio of companies, we are comfortable with the strength of their balance sheets, business operations and abilities to weather the stock market correction.” He added “Subsequently to the end of the third quarter, we have seen improvement in the performance of our core portfolio of investment assets and look forward to reporting back on our developments over the course of the next six months.”
A full set of unaudited financial statements and related notes have been filed 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 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 .
These materials include certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Other than statement of historical fact, all statements in this material, including, without limitation, statements regarding fair values of marketable securities, investments, bridge loans, convertible debentures, estimated asset retirement obligations, and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of these materials. Important factors that could cause actual results to differ materially from the Company’s expectations include, without limitation, the level of bridge loans completed, the nature and credit quality of the collateral security, the sufficiency of cost estimates for remaining reclamation obligations as well as those factors discussed in the Company’s documents filed from time to time with the TSX Venture Exchange, Canadian securities regulators and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.
Neither TSX Venture Exchange 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.