Fountain Asset Corp. Announcing Its Financial Results for the Quarter Ended September 30, 2024.

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TORONTO, Nov. 26, 2024 (GLOBE NEWSWIRE) – Company Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) would like to announce its financial results for the three and nine months ended September 30, 2024 (“Q3/24“).

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Highlights from the three months ended September 30, 2024:

• NAV of $5.03 million ($0.08/share) on September 30, 2024 compared to $5.73 million ($0.09/share) on June 30, 2024, representing a decrease of 11% quarter over quarter on a per share basis. NAV is calculated as the value of total assets less the value of total liabilities;
• Net loss of $0.71 million compared to net loss of $0.75 million for the quarter ended September 30, 2023 (“Q3/23”);
• Net loss from investing activity was $0.43 million compared to a loss of $0.59 million for Q3/23;
• Net gain on sale of investment portfolio of $0.06 million compared to net gain of $0.43 million in Q3/23;
• Net unrealized loss on portfolio investments of $0.50 million compared to an unrealized loss of $0.17 million in Q3/23;
• Total expenses of $0.28 million compared to $0.16 million for Q3/23; again
• Operating expenses of $0.26 million compared to $0.15 million in Q3/23.

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Highlights from the nine months ended September 30, 2024:

• NAV of $5.03 million ($0.08 per share) on September 30, 2024 compared to $6.66 million ($0.11 per share) on December 31, 2023, representing a 24% year-to-date decline per share. NAV is calculated as the value of total assets less the value of total liabilities;
• A net net loss of $1.65 million for the nine months ended September 30, 2024, compared to a net net loss of $1.63 million for the nine months ended September 30, 2023;
• Net loss from investing activities was $0.98 million compared to a net loss of $1.08 million for the nine months ended September 30, 2023;
• Net realized loss on sale of portfolio investments of $0.81 million compared to realized loss of $1.90 million for the nine months ended September 30, 2023;
• Total unrealized losses on portfolio investments of $0.90 million compared to net unrealized gains of $0.80 million for the nine months ended September 30, 2023;
• Total expense of $0.67 million, which includes $0.02 million of stock-based compensation, compared to $0.55 million for the nine months ended September 30, 2023 which includes $0.07 of stock-based compensation; again
• Operating expenses of $0.65 million compared to $0.53 million for the nine months ended September 30, 2023.

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During Q3/24, the Company realized a $0.06 million gain on the sale of non-core investments. The company saw a decline in its portfolio of publicly traded companies resulting in unrealized net losses during Q3/24.

The Company continued to focus on reducing its operating expenses in Q3/24, which helped reduce the Company’s net loss. As of September 30, 2024, the Company’s net assets were approximately $5.03 million or $0.08 per share compared to $6.66 million or $0.11 per share as of December 31, 2023.

“During Q3/24, Fountain was able to continue to realize gains from the sale of its non-core assets while focusing on reducing its operating expenses to strengthen the Company’s financial position and capitalize on investment opportunities. Fountain continues to make strategic investments that we believe will bring economic benefits to the Company and its shareholders.” said Andrew Parks, CEO of Fountain.

The complete set of Q3 2024 unaudited financial statements and management’s discussion and analysis are available on SEDAR+.

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About Fountain Asset Corp.

Fountain Asset Corp. is a merchant bank that provides equity financing, bridging services (asset refinancing/combined financing) and strategic financial consulting services to companies in a wide range of industries such as cannabis, oil and gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

Forward-Looking Statements

Certain information contained in this press release includes forward-looking information, which is information related to possible events, conditions or results of the Company’s operations, which are based on assumptions and courses of action and are uncertain in nature. All information other than statements of historical fact may be forward-looking information. Forward-looking information in this press release includes, but is not limited to, Fountain’s capital increase and strong pipeline going forward. These forward-looking statements reflect the Company’s expectations or beliefs based on information available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are foreseeable or more likely, they could be. there is no assurance that they will have the expected results, or results for the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the level of bridge loans and equity investments completed, the nature and credit quality of the security collateral and the nature and quality of equity investments, and other risks disclosed under the heading “Factors of Risk” and elsewhere in the Company’s annual information form dated August 17, 2022 filed on SEDAR+ at www.sedarplus.ca. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intention or obligation to update any forward-looking statement, whether as a result of new information. , future events or results or otherwise. Although the Company believes that the assumptions contained in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and therefore undue reliance should not be placed on such statements due to the inherent uncertainties..

TSX Venture Exchange Inc. or Its Legal Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts no responsibility for the adequacy or accuracy of this release.

For more information: please contact Andrew Parks at (416) 456-7019 or visit the Fountain Asset Corp. website. at www.fountainassetcorp.com.

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