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GC-Global Capital Corp. Announces its Financial Results for the Year Ended December 31, 2012
Toronto, Ontario--(Newsfile Corp. - April 30, 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 Year Ended December 31, 2012\n\nToronto, Ontario--(Newsfile Corp. - April 30, 2013) - GC-Global Capital Corp. (\"Global Capital\") (TSX-V: GDE.A) announces its financial results for the year ended December 31, 2012. \n\n2012 Operating Results \n\nAs at December 31, 2012 GC’s net assets were valued at $9.23 million or $0.48 per share compared to $10.54 million or $0.58 per share as at December 31, 2011. The $1.31 million dollar drop in net assets is principally a \ncombination of $0.40 million in new shares issued (1,333,332 shares issued January 3, 2012) offset by the net loss of $1.51 million. In 2012, the management team focused on reversing the impact of non-cash, valuation sources where possible. \nProgress is being made on reversing these non-cash expenses which are focused 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 \nvaluation of equity investments through working with management to drive net profit, 4) capturing improvements in the United States real estate market.\n\nThe majority of the losses for 2012 stem from operations and the available for sale financial assets as well as the delay in the launch of Marathon Mortgage Corporation. In 2011, legacy real estate holdings and the bridge loan related to the museum \nexhibition called the Las Vegas Mob Experience (“LVME”) were written down. In November 2012 GC successfully took possession of the assets of the LVME as part of its recovery process. Regarding the state of the U.S. real estate recovery, \nwe continue to monitor the markets of North Carolina, New Mexico and Georgia where the real estate holdings are located. These markets continue to show signs of healing and expect relative improvement in these markets in 2013 and 2014. The \ncombination of the sluggish U.S. real estate market along with the lengthy legal process of the U.S. courts required the company to take conservative measures and write down these assets with the goal of creating an asset base and net asset value \nper share to now grow from. \n\nComments on the First Quarter of 2013\n\nThe Company expects to file its first quarter financial statements for the period ending March 31, 2013 prior to t...