TORONTO, ONTARIO – GC-Global Capital Corp. (“Global Capital”) (TSX Venture
Exchange “GDE.A”) announces its financial results for the third quarter ending September 30, 2014.
- Nine month revenue of $3.5 million, up significantly from $409,316 in 2013;
- Net income for the nine month period of $781,000 ($0.03 per share);
- Portfolio of publicly traded companies $5.1 million, up from $3.3 million in the second quarter;
- Increase of total assets to $13.5 million from $9.8 million as at December 31, 2013;
Management’s Third Quarter Comments
The net income for the period ending September 30, 2014 was $185,990 (2013 – net loss of $145,171) and net comprehensive income was $185,990 (2013 – net loss of $145,171). Income from unrealized gains on the Company’s publicly traded companies grew a further $1,428,879 for the quarter ending September 30, 2014 compared to an unrealized gain of $133,941 for the same period last year however the current quarter’s gain were offset by bad debt expenses and provision of loan losses of $627,456 and $553,878 respectively. Net income per share for the quarter was $0.00 (September 30, 2013 – loss of $0.01).
Total assets as at September 30, 2014 were $13.5 million compared to $9.8 million as at December 31, 2013, a $3.7 million increase from year end. In the nine months ended September 30, 2014, cash and short term investments decreased by $0.1 million. GC’s loan and convertible debenture portfolio amounted to $2.5 million, an increase of $0.6 million as compared to $1.9 million as at December 31, 2013. The Company’s portfolio investments amounted to $6.9 million, an increase of 146% as compared to $2.8 million at December 31, 2013. The fair market value of the Company’s portfolio investments include bonus shares received from the Company’s bridge loan activities as well as investment in growth companies. The Company records the changes in fair market value of its available-for-sale portfolio investments in ‘accumulated other comprehensive income on its statement of financial position. The investment property portfolio remained at $0.5 million (December 31, 2013 – $0.5 million). Equity method investments decreased by $0.4 million (TLD and MMC) year to date (December 31, 2013 – $1.7 million).
In the third quarter of 2014, Global Capital continued to see growth in its portfolio of public company investments as well as many opportunities for implementing its financial services to new client companies. Jason Ewart, the CEO of GC Global Capital, stated “During the quarter the management team made progress towards transactions with growth oriented companies. At the same time during the quarter, the Company wrote down underperforming legacy holdings from its investment portfolio”. He added “Our pipeline of deal flow is healthy and we look forward to closing and reporting new transactions in the near future.”
A full set of unaudited financial statements and related notes have been filed on SEDAR.
Subsequent events to the third quarter
The Company participated in a private placement financing of Smart Employee Benefits Inc. (“SEB”) (TSXV symbol: SEB). In connection with SEB’s two equity financings for an aggregate total of up to $3,000,000, Global Capital has invested $1,000,000. Global Capital’s investment in SEB consists of $1,000,000 of Equity Units (“Equity Units”). The Equity Units were issued at $0.50 per unit and each Equity Unit consists of one SEB common share and one SEB common share purchase warrant exercisable for a period of 36 months at $0.60 per share for year one and year two and $0.75 per share for year three. Global Capital has also entered into a 3 year consulting contract with SEB for which it is receiving 1,400,000 options exercisable for 3 years at $0.50 per share. The options are subject to vesting provisions over six months.
The Company’s convertible debentures issued by 3Tier Logic Inc has been converted at a price of $0.10 into common shares of 3TL Technologies Corp which is a publicly listed company trading on the TSXV. The common shares began trading on November 10, 2014 under the symbol “TTM”.
About GC-Global Capital Corp.
Global Capital is a merchant bank, which provides financial 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 Global Capital’s website at www.gcglobalcapital.ca .
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.