Fountain Asset Corp. Announces Financial Results for the Second Quarter 2019

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Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) is pleased to announce financial results for the second quarter ended June 30, 2019 (“Q2/19“).

“The Company posted a decline in Adjusted Net Asset Value quarter over quarter during Q2/19.  The decline was driven by weakness in the cannabis sector,” said Andrew Parks, CEO of Fountain.

Highlights from the three months ended June 30, 2019:

  • Adjusted net asset value (“ANAV“) of $37.56 million ($0.63 per share) at June 30, 2019 compared with $40.60 ($0.68per share) at March 31, 2019, representing a 7.4% decrease quarter over quarter on a per-share basis. ANAV reflects the net asset value plus the amount of available tax loss pools available;
  • Net comprehensive loss of $3.04 million compared to income of $4.19 million for three months ended June 30, 2018 (“Q2/18“);
  • Total losses from investment activity was $2.65 million compared to revenue of $4.57 million for Q2/18;
  • Net realized gains on the sale of portfolio investments of $1.26 million compared to net realized gains of $2.05 million for Q2/18;
  • Net unrealized losses on portfolio investments of $4.15 million compared to net unrealized gains of $2.35 million for Q2/18;
  • Total expenses of $0.39 million, including stock-based compensation of $0.09 million, compared to $0.38 million, including stock-based compensation of $0.13 million, for Q2/18; and
  • Operating expenses of $0.29 million compared to $0.25 million for Q2/18.

Highlights from the six months ended June 30, 2019:

  • ANAV of $37.56 million ($0.63 per share) at June 30, 2019 compared to $36.77 million ($0.63 per share) at December 31, 2018, representing no increase year to date on a per share basis;
  • Net comprehensive income of $0.89 million compared to $2.57 million for the six months ended June 30, 2018;
  • Total revenue from investment activity decreased to $1.59 million compared to $3.18 million for the six months ended June 30, 2018;
  • Net realized gains on the sale of portfolio investments of $1.58 million compared to net realized gains of $6.50 million for the six months ended June 30, 2018;
  • Net unrealized losses on portfolio investments of $1.01 million compared to net unrealized losses of $3.57 millionfor the six months ended June 30, 2018;
  • Total expenses of $0.70 million, including stock-based compensation of $0.20 million, compared to $0.61 million, including stock-based compensation of $0.13 million, for the six months ended June 30, 2018; and
  • Operating expenses of $0.50 million compared to $0.48 million for the six months ended June 30, 2018.

During the quarter, the Company saw a decline in performance from its portfolio driven by investments in Green Growth Brands and 3 Sixty Risk Solutions Ltd.  This was offset by gains on our investment in HTC Purenergy.

A full set of Q2/19 unaudited financial statements and the management discussion & analysis are available on SEDAR.

 

SOURCE Fountain Asset Corp.