TORONTO, ONTARIO – GC-Global Capital Corp. (“Global Capital”) (TSX Venture Exchange “GDE.A”) announces its financial results for the year ended December 31, 2014.
- Twelve month revenue of $6.3 million, representing a 10.5x growth factor over 2013;
- Net income for the twelve month period of $2,500,000 ($0.07 per share);
- Portfolio of publicly traded companies $6.4 million, up from $163,000 in 2013;
- Increase of total assets to $16 million from $9.8 million in 2013.
During 2014, the Company continued its initiative that began in the second half of 2013 to refocus the business and strengthen the quality and discipline of its investment strategy. For the year ended December 31, 2014, the Company reported total revenue of $6.3 million compared to $0.6 million in the prior year representing a 10.5x growth factor in its revenue for the year. For the year ended December 31, 2014, the Company reported total expenses of $3.2 million compared to $2.9 million in the prior year. The Company’s effort resulted in net income of $2.5 million in 2014 compared to a loss of $3.1 million in 2013.
In its effort to refocus the Company’s investment strategy, management actively pursued to diversify its asset mix to include publicly traded securities as a significant portion of its asset base. In 2014, the Company raised approximately $3.2 million through various offerings during the year that provided the necessary funds to execute its asset diversification strategy.
As at December 31, 2014, the Company’s net assets were valued at $12.1 million or $0.35 per share compared to $6.5 million or $0.28 per share as at December 31, 2013. The material increase in net assets during the current period is attributed to the $2.5 million net income for the year coupled with various financing activities which injected $3.2 million of gross capital into the Company.
Jason Ewart, CEO of GC Global Capital Corp. stated “The new capital that was raised in late 2013 and 2014 was deployed into various transactions that showed positive results in 2014.” He added, “The Company posted record revenue and profit in 2014, while we continued to make significant investments for future growth.”
2014 Audited Financial Statements and MD&A
A full set of the 2013 audited financial statements and the Management Discussion & Analysis are available on SEDAR.
Subsequent Events to the end of 2014:
On January 19, 2015, GC Marathon Financial Corp. (“GCMFC”) amended its articles of incorporation to change the corporate name to Bradstone Financial Corp. On January 27, 2015, the Company announced that its wholly owned subsidiary, GC Marathon Financial Corp. (“GCMFC”), has entered into a non-binding letter of intent with HPB Investments Inc. (“HPB”), an arm’s length company that is a reporting issuer in Ontario, on January 26, 2015 to complete a business combination between GCMFC and HPB to form a new entity to be named “Bradstone Financial Corp.”, pursuant to a share exchange, amalgamation, plan of arrangement or such other similar transaction as determined by Bradstone and HPB following a review of all relevant tax, corporate and securities law considerations.
On March 12, 2015, the Company announced that it has closed the “best efforts” public offering previously announced on January 16, 2015 (the “Offering”). Pursuant to the Offering, The Company issued 11,994,355 subordinate voting shares at a price of $0.45 per Share for gross proceeds of $5,397,460. Associated share issuance costs totalled $0.2 million and commission to the agent totaled $0.3 million.
On April 29, 2015, the Board of Directors approved the issuance of 1,210,000 options to executives. The exercise prices of the options are $0.47 and have a term of 5 years of which 860,000 of the options have a vestment schedule of 4 years. The option plan is designed to give each optionee an interest in preserving and maximizing shareholder value in the longer term.
Global Capital’s shares trade on the TSX Venture Exchange under the symbol “GDE.A”.
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.
About GC-Global Capital Corp.
GC Global Capital is a merchant bank which provides equity financing and bridge loan services (asset back/collateralized financing), 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 our website at www.gcglobalcapital.ca .
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.