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GC-Global Capital Corp. Announces its Financial Results for the First Quarter Ended March 31, 2013
Toronto, Ontario--(Newsfile Corp. - May 31, 2013) - GC-Global Capital Corp. ("Global Capital")...
About this update from Fountain Asset Corp.
[{"type":"text","content":"\nGC-Global Capital Corp. Announces its Financial Results for the First Quarter Ended March 31, 2013Toronto, Ontario--(Newsfile Corp. - May 31, 2013) - GC-Global Capital Corp. (\"Global \nCapital\") (TSXV: GDE.A) announces its financial results for the \nfirst quarter ending March 31, 2013.\nOverall First Quarter Performance\nThe net loss for the quarter ended March 31, 2013 was $370,948 \n(March 31, 2012 profit of - $101,745) and net comprehensive loss was $370,948 \n(March 31, 2012 - profit of $224,681). The bulk of the loss from operations, \n$265,362 (March 31, 2012 -$140,754) and equity method valuation which may not be \nrealized in the future: $105,586 (March 31, 2012 - profit of $236,749). Net loss \nper share was $0.02 (March 31, 2012 - profit of $0.01) . In 2013 and 2012, the \nmanagement team focused on reversing the impact of non-cash, valuation sources \nwhere possible. Efforts to reverse these non-cash expenses focused on: 1) \nrecovering capital from legacy bridge loans which have been written down, 2) \nidentifying opportunities to reduce the provision for loan losses, 3) improving \nthe valuation of equity investments through working with management to drive net \nprofit, 4) capturing improvements in the United States real estate market. \nAs at March 31, 2013 GC's net assets were valued at $8.86 \nmillion or $0.46 per share compared to $9.23 million or $0.48 per share as at \nDecember 31, 2012. The $0.37 million dollar change in net assets is primarily \ndue to a net loss of $0.37 million. There were no share buybacks through the \nCompany's Normal Course Issuer Bid (\"NCIB\") in the first quarter of 2013.\nA portion of the losses for the quarter ended stem from the \ndelay in the launch of Marathon Mortgage Corporation (\"MMC\"), a core holding of \nthe Company. MMC is a residential mortgage origination, sales and servicing \ncompany registered across Canada.\nSubsequent Event\nOn May 29, 2013, the Board of Directors approved the issuance \nof 900,000 options to executive and non-executive directors as well as the \ncorporate secretary. The exercise prices of the options are $0.20 and $0.40. The \noptions are subject to a 4 month hold and have a term of 10 years. The 490,000 \noptions for the executive directors have a vestment schedule of 25% beginning \nMay 29, 2013, and 25% in each of the subsequent six mon...