Business
Fountain Asset Corp. Announces Its Financial Results for the Year Ended December 31, 2015
TORONTO, ON / ACCESSWIRE / May 2, 2016 / Fountain Asset Corp. (TSXV: FA) ("Global Capital") ...
About this update from Fountain Asset Corp.
[{"type":"text","content":"Fountain Asset Corp. Announces Its Financial Results for the Year Ended December 31, 2015TORONTO, ON / ACCESSWIRE / May 2, 2016 / Fountain Asset Corp. (TSXV: FA) (\"Global Capital\") announces its financial results for the year ended December 31, 2015. Highlights from 12 Month period ending December 2015:Net comprehensive loss for the twelve month period of $4.5 million;$4.0 million of the $4.5 million loss is attributed to unrealized losses from the portfolio of public companies as a result of negative north American stock markets conditions in late 2015; Recurring revenue from interest and advisory fees was of $980,000, an increase of approximately 153% over the previous year.During the second half of 2015, the overall weakness in the Canadian public markets saw the Company's public portfolio negatively impact its overall 2015 results. The Company reported net comprehensive losses of $4.5 million for the year-ended December 31, 2015. The losses are born primarily from $4.0 million in unrealized losses in its public investments portfolio.It is important to note that majority of losses from 2015 are unrealized, and management believes Fountain's public portfolio is well positioned to perform well in the latter half of 2016.In addition, Fountain's management has continued to ramp up the 'active investor' strategy whereby Fountain involves itself in the operations of portfolio companies in return for fees and equity upside potential. This strategy contributed to nearly $1 million in fees and interest (153% growth year over year) in 2015, and management believes this strategy will continue to provide steady income in the coming years.Jason Ewart, CEO of Fountain Asset Corp. stated \"Despite the public markets preforming poorly in the second half of 2015, Fountain was able to maintain its position in all of its strategic holdings, and effectively support itself by the recurring cash flows of its private investments.\" Jason added, \"Management expects 2016 to show improved performance in our public company portfolio holdings and as a result, provide accretive results to Fountain.\"2015 Audited Financial Statements and MD&AA full set of the 2015 audited 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 f...