Fountain Asset Corp. Financial Results for Q2 2024

Fountain Asset Corp. Announces Financial Results

Fountain Asset Corp. (TSXV:FA) is pleased to announce its financial results for the three and six months ended June 30, 2024.

Highlights from Q2 2024

Key metrics for the quarter:

• NAV of $5.73 million ($0.09/share) at June 30, 2024, compared to $6.22 million ($0.10/share) at March 31, 2024, representing a 10% decrease on a per share basis.
• Net comprehensive losses of $0.49 million compared to net comprehensive losses of $0.70 million for the same quarter a year earlier.
• Total losses from investment activity was $0.27 million versus losses of $0.53 million for the previous year.
• Net realized gains on the sale of portfolio investments were $0.17 million, an improvement from net realized losses of $1.56 million from the prior year.
• Net unrealized losses on portfolio investments amounted to $0.44 million compared to net unrealized gains of $1.03 million in the same period last year.
• Total expenses rose to $0.22 million from $0.17 million in the same quarter last year.
• Operating expenses were $0.22 million compared to $0.19 million from the previous year.

Highlights from Six Months Ended June 30, 2024

Key metrics for the six-month period:

• NAV is reported at $5.73 million ($0.09/share), down from $6.66 million ($0.11/share) at December 31, 2023, reflecting a 16% decline year-to-date.
• Net comprehensive loss amounted to $0.95 million for the six months, compared to a loss of $0.88 million for the previous year.
• Total loss from investment activity was $0.54 million, compared to $0.50 million the previous year.
• Net realized losses on the sale of portfolio investments totaled $0.14 million versus net realized losses of $1.47 million a year earlier.
• Net unrealized losses on portfolio investments were $0.41 million, in comparison to net unrealized gains of $0.97 million the previous year.
• Total expenses were $0.40 million, including $0.01 million of stock-based compensation, against $0.39 million the previous year.
• Operating expenses were $0.39 million, slightly up from $0.38 million the year before.

Company Performance Insights

During Q2 2024, the Company realized $0.17 million in gains from the sale of non-core portfolio investments. The overall decline in its publicly traded portfolio contributed to net unrealized losses during this quarter.

Despite challenges, the Company succeeded in maintaining low operating expenses during Q2 2024, helping to minimize its net comprehensive loss. As of June 30, 2024, net assets were valued at $5.73 million, translating to $0.09 per share.

Andrew Parks, CEO of Fountain, commented, “In Q2 2024, we were able to realize gains on the sale of non-core portfolio investments while refocusing on our growth-oriented objectives by realigning our investment portfolio for new opportunities.”

Debt Settlement Approval

Fountain Asset Corp. has reported that its board has approved settling $127,500 of debt through the issuance of subordinate voting shares. This transaction will involve issuing 2,550,000 subordinate voting shares at a deemed price of $0.05 per share to a creditor of the Company.

The transaction is subject to approval from the TSX Venture Exchange and applicable shareholder consent. Given the insider participation in this transaction, it qualifies as a “related party transaction,” and it has been deemed reasonable by independent directors of the Company.

About Fountain Asset Corp.

Fountain Asset Corp. operates as a merchant bank offering equity financing, bridge loan services, and strategic financial consulting across diverse industries, including marijuana, oil & gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

Frequently Asked Questions

What are the key financial results for Q2 2024?

The key financial results include a NAV of $5.73 million, net comprehensive losses of $0.49 million, and realized gains of $0.17 million from portfolio investments.

How did Fountain Asset Corp. perform in the first half of 2024?

Fountain reported a net comprehensive loss of $0.95 million, with total expenses rising to $0.40 million.

What strategies is Fountain implementing for growth?

Fountain is focusing on realigning its investment portfolio to capture new opportunities while maintaining low operating expenses.

What was the reason behind the debt settlement announcement?

The debt settlement was approved to manage liabilities effectively, involving the issuance of subordinate voting shares to a creditor.

What sectors does Fountain Asset Corp. serve?

Fountain serves multiple sectors, including marijuana, oil & gas, mining, real estate, and biotechnology.

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