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GC-Global Capital Corp. Announces its Financial Results for the Second Quarter Ended June 30, 2013
Toronto, Ontario--(Newsfile Corp. - September 3, 2013) - GC-Global Capital Corp. ("Global Capi...
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, 2013Toronto, Ontario--(Newsfile Corp. - September 3, 2013) - GC-Global Capital Corp. (\"Global Capital\") (TSX Venture Exchange \"GDE.A\") announces its financial results for the second quarter ending June 30, 2013. \n\nOverall Second Quarter Performance\n\nAs at June 30, 2013 GC’s net assets were valued at $8.47 million or $0.44 per share compared to $9.23 million or $0.48 per share as at December 31, 2012. The $0.76 million dollar change in net assets is principally due to a \nnet loss of $0.76 million.\n\nThe net loss for the six months ended June, 2013 was $755,957 (2012 – loss of $415,707). The loss was primarily due to operations and equity method investment losses in the first six months and loss before equity investment gains. A \nportion of the losses for the quarter ended stem from the delay in the launch of Marathon Mortgage Corporation (“MMC”), a core holding of the Company. MMC is a residential mortgage origination, sales and servicing company registered \nacross Canada. Net loss per share was $0.04 (2012 – loss of $0.02) . In 2013, the management team is focusing on reversing the impact of non-cash, valuation sources where possible. Progress is being made on reversing these non-cash \nexpenses 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 \nmanagement to drive net profit, 4) capturing improvements in the United States real estate market.\n\nAs at June 30, 2013, Global Capital had $313,592 in cash and short-term investments and $480,706 of portfolio investments in publicly traded companies. The Company had $1,480,125 in notes receivable, bridge loans and convertible \ndebentures due within one year. In managements’ opinion, the Company has sufficient resources to meet its current cash flow requirements.\n\nA full set of unaudited financial statements and related notes have been filed on SEDAR. \n\nGlobal Capital also announces it has entered into an office space leasing agreement with a company owned by a director of Global Capital. The leasing agreement provides Global Capital with office space on...