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

TORONTO, Nov. 26, 2019 /CNW/ - Fountain Asset Corp. (TSXV:FA) ("Fountain" or the "Company") is pleased to announce financial results for the third quarter ended September 30, 2019 ("Q3/19").

"The Company posted a decline in Adjusted Net Asset Value quarter over quarter during Q3/19.  The decline was driven by Sweet Natural Trading, Green Growth Brands, and Cansortium," said Andrew Parks, CEO of Fountain.

Highlights from the three months ended September 30, 2019:

• Adjusted net asset value ("ANAV") of $26.80 million ($0.45 per share) at September 30, 2019 compared with $37.56 ($0.63 per share) at June 30, 2019, representing a 28.5% 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 $10.93 million compared to income of $4.99 million for three months ended September 30, 2018 ("Q3/18");
• Total losses from investment activity was $10.62 million compared to revenue of $7.77 million for Q3/18;
• Net realized losses on the sale of portfolio investments of $1.88 million compared to net realized gains of $5.75 million for Q3/18;
• Net unrealized losses on portfolio investments of $8.75 million compared to net unrealized gains of $1.87 million for Q3/18;
• Total expenses of $0.32 million, including stock-based compensation of $0.07 million, compared to $2.50 million, including stock-based compensation of $0.03 million, and annual incentive plan expense of $2.14 million for Q3/18; and
• Operating expenses of $0.25 million compared to $0.33 million for Q3/18.

Highlights from the nine months ended September 30, 2019:

• ANAV of $26.80 million ($0.45 per share) at September 30, 2019 compared to $36.77 million ($0.63 per share) at December 31, 2018, representing a decrease of 28.5% year to date on a per share basis;
• Net comprehensive loss of $10.04 million compared to income of $7.56 million for the nine months ended September 30, 2018;
• Total losses from investment activity was $9.02 million compared to revenue of $10.95 million for Q3/18;
• Net realized losses on the sale of portfolio investments of $0.30 million compared to net realized gains of $12.24 million for the nine months ended September 30, 2018;
• Net unrealized losses on portfolio investments of $9.76 million compared to net unrealized losses of $1.70 million for the nine months ended September 30, 2018;
• Total expenses of $1.02 million, including stock-based compensation of $0.27 million, compared to $3.11 million, including stock-based compensation of $0.16 million, and annual incentive plan expense of $2.14 million for the nine months ended September 30, 2018; and
• Operating expenses of $0.75 million compared to $0.81 million for the nine months ended September 30, 2018.

A full set of Q3/19 unaudited financial statements and the management discussion & analysis are available 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 marijuana, oil & gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

Neither TSX Venture Exchange Inc. 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.

SOURCE Fountain Asset Corp.

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