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GC-Global Capital Corp. Announces its Financial Results for the Second Quarter Ended June 30, 2012
Toronto, Ontario--(Newsfile Corp. - August 29, 2012) - GC-Global Capital Corp. (TSXV:GDE.A) ("Gl...
About this update from Fountain Asset Corp.
[{"type":"text","content":"\nGC-Global Capital Corp. Announces its Financial Results for the Second Quarter Ended June 30, 2012\n\nToronto, Ontario--(Newsfile Corp. - August 29, 2012) - GC-Global Capital Corp. (TSXV:GDE.A) (\"Global Capital\") is pleased to announce its financial results for the second quarter ending June 30, 2012. Overall Second Quarter PerformanceAs at June 30, 2012 GC’s net assets were valued at $10.37 million or $0.53 per share compared to $10.54 million or $0.58 per share as at December 31, 2011. The $0.17 million dollar drop in net assets is a combination of $0.40 million in new shares issued (1,333,332 shares issued January 3, 2012), and the net loss of $0.56 million. The share buybacks through the Company’s Normal Course Issuer Bid (“NCIB”) were minimal in the first half of 2012.The net loss for the six month period ended June 30, 2012 was $409,957 (2011 – loss of $229,706) and net comprehensive loss was $559,162 (2011 – loss of $794,488). The bulk of the loss from the following non-cash, valuation related sources may not be realized in the future: $149,205 due to unrealized loss on fair value through profit or loss investments (2011 – loss of $439,521. Net loss per share was $0.02 (2011 – loss of $0.01).In 2012, the management team is focusing on reversing the impact of non-cash, valuation sources where possible. Efforts to reverse these non-cash expenses will focus on: 1) recovering capital from legacy bridge loans which have been written down, 2) identifying opportunities to reduce the provision for loan losses, 3) improving the valuation of equity investments through working with management to drive net profit, 4) capturing improvements in the United States real estate market.Total expenses for the first half of 2012 were $622,585 as compared to $2,093,748 in 2011. Total expenses reflect an increase in legal and audit cost of $147,994 as compared with $91,711 for the same period in 2011. Rent for the first half of 2012 was $70,552 as compared with $47,123 in the first half of 2011 (the increase in rent of $23,429 due to an early lease termination payment). All other expenses are generally lower reflecting management’s focus on containing costs. As at June 30, 2012, Global Capital had $591,912 in cash and short-term investments and $1,290,959 of portfolio investment...