FOUNTAIN ASSET CORP. Highlights from three months ended
- Net asset value (“NAV”) of
$11.00 million ($0.18 per share) atJune 30, 2023 compared to$11.68 million ($0.19 per share) atMarch 31, 2023 , representing a decrease of 5.3% quarter over quarter on a per share basis. NAV is calculated as the value of total assets less the value of total liabilities; - Net comprehensive loss of
$0.70 million for the three months endedJune 30, 2023 , compared to net comprehensive loss of$5.02 million for three months endedJune 30, 2022 (“Q2/22”); - Total loss from investment activity was
$0.53 million compared to total loss of$4.70 million for Q2/22; - Net realized losses on the sale of portfolio investments of
$1.56 million compared to net realized losses of$1.24 million for Q2/22; - Net unrealized gains on portfolio investments of
$1.03 million compared to net unrealized losses of$3.47 million for Q2/22; - Total expenses of
$0.17 million , which included$0.02 million of stock-based compensation, compared to$0.32 million for Q2/22 which included$0.02 of stock-based compensation; and - Operating expenses of
$0.19 million compared to$0.19 million for Q2/22.
Highlights from six months ended
- NAV of
$11.00 million ($0.18 per share) atJune 30, 2023 compared to$11.84 million ($0.19 per share) atDecember 31, 2022 , representing a 5.3% decrease year to date on a per share basis. NAV is calculated as the value of total assets less the value of total liabilities; - Net comprehensive loss of
$0.88 million for the six months endedJune 30, 2023 , compared to net comprehensive loss of$7.06 million for the six months endedJune 30, 2022 ; - Total loss from investment activity was
$0.50 million compared to total loss of$6.50 million for the six months endedJune 30, 2022 ; - Net realized losses on the sale of portfolio investments of
$1.47 million compared to net realized losses of$2.05 million for the six months endedJune 30, 2022 ; - Net unrealized gains on portfolio investments of
$0.97 million compared to net unrealized losses of$4.47 million for the six months endedJune 30, 2022 ; - Total expenses of
$0.39 million , which included$0.05 million of stock-based compensation, compared to$0.56 million for the six months ended Juen 30, 2022 which included$0.05 of stock-based compensation; and - Operating expenses of
$0.38 million compared to$0.37 million for the six months endedJune 30, 2022 .
During Q2/23, the company saw a decrease in its portfolio of publicly traded companies, as a result of continued volatility and uncertainty surrounding global markets. The Company also strategically disposed of non-core investment holdings that continued to struggle during these challenging times. The decreases recorded by the Company were slightly offset by increases in the stock prices of Alchemist Mining Inc. and SRG Mining Inc.
The Company continued to maintain low operating expenses in Q2/23, which helped reduce the net comprehensive loss of the Company. As at
“In Q2/23, Fountain strategically disposed of non-core portfolio investments and utilized the proceeds received to continue to strengthen its position in the battery metals, mining, and energy sectors. Although this resulted in the Company realizing losses on the sale of some of its investments, we believe that the new opportunities that Fountain has invested in will lead to future long term economic benefits for the Company,” said
A full set of the Q2/23 unaudited financial statements and the management’s discussion & analysis are available on SEDAR.
About
Forward-Looking Statements
Certain information contained in this press release constitutes forward-looking information, which is information relating to possible events, conditions or results of operations of the Company, which are based on assumptions and courses of action and which are inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information in this press release includes, but is not limited to, growing Fountain’s capital base and a strong pipeline going forward. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the level of bridge loans and equity investments completed, the nature and credit quality of the collateral security and the nature and quality of equity investments, and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated August 17, 2022 filed on SEDAR at www.sedarplus.ca. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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