Fountain Asset Corp. Announces its Financial Results for the Quarter Ended 30 June 2024.

TORONTO, Aug. 20, 2024 (GLOBE NEWSWIRE) — Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) wishes to announce its financial results for the three and six months ended June 30, 2024 (“Q2/24“).

Highlights for the three months ended June 30, 2024:

• NAV of $5.73 million ($0.09/share) on June 30, 2024 compared to $6.22 million ($0.10/share) on March 31, 2024, representing a 10% quarter-over-quarter decrease . NAV is calculated as the value of total assets less the value of total liabilities;

• A net loss of $0.49 million compared to a net loss of $0.70 million for the quarter ended June 30, 2023 (“Q2/23”);

• The total loss from financial activity was $0.27 million compared to a loss of $0.53 million for Q2/23;

• Net​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​a has ended in Q2/23;

• Unrealized portfolio investment losses of $0.44 million compared to unrealized gains of $1.03 million for Q2/23;

• Total expenses of $0.22 million compared to $0.17 million for Q2/23; and

• Operating expenses of $0.22 million compared to $0.19 million for Q2/23.

Highlights for the six months ended June 30, 2024:

• NAV of $5.73 million ($0.09 per share) on June 30, 2024 compared to $6.66 million ($0.11 per share) on December 31, 2023, representing a 16% year-to-date decrease on a per share basis . NAV is calculated as the value of total assets less the value of total liabilities;

• A net loss of $0.95 million for the six months ended June 30, 2024, compared to a net loss of $0.88 million for the six months ended June 30, 2023;

• Net loss from investing activities was $0.54 million compared to a net loss of $0.50 million for the six months ended June 30, 2023;

• Nete​​​​ saw a loss on the sale of portfolio investments of $0.14 million compared to a realized loss of $1.47 million for the six months ended June 30, 2023;

• Unrealized losses on portfolio investments of $0.41 million compared to unrealized gains of $0.97 million for the six months ended June 30, 2023;

• Total expense of $0.40 million, which included $0.01 million of stock-based compensation, compared to $0.39 million for the six months ended June 30, 2023 which included $0.05 of stock-based compensation to goods; and

• Operating expenses of $0.39 million compared to $0.38 million for the six months ended June 30, 2023.

During Q2/24, the Company realized a gain of $0.17 million on the sale of non-core investments. The company saw a decline in its portfolio of publicly traded companies leading to an unexpected loss during Q2/24.

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The Company continued to maintain low operating costs in Q2/24, which helped reduce the Company’s net loss. As of June 30, 2024, the Company’s total assets were valued at $5.73 million or $0.09 per share compared to $6.66 million or $0.11 per share as of December 31, 2023.

“During Q2/24, Fountain was able to realize gains on the sale of its non-core investments while continuing to focus on its growth-oriented goals by adjusting its investment position for of new opportunities.” said Andrew Parks, CEO of Fountain.

A complete list of the unaudited Q2 2024 financial statements and management discussion and analysis is available on SEDAR+.

Fountain Asset Corp. Identify Shares for Credit Transactions

Fountain Asset Corp. would like to report that its board of directors has approved a $127,500 debt settlement by issuing the following shares of the Company’s stock (the “Credit Card“). Pursuant to the Issue of Debentures, the Company would issue the following shares of 2,550,000 Company options (“Shares”) at a deemed price of $0.05 per Share to a certain creditor of the Company, who is also an officer of Fountain (theDebt“).

The issuance of Shares to the Debt is subject to the approval of the TSX Venture Exchange and the receipt of applicable shareholder approval. As the insider will be participating in the Credit Transfer, it is considered a “related party transaction” under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transaction (“MI 61- 101”). All of the Company’s independent directors, acting in good faith, considered the transactions and determined that the fair market value of the securities issued to the insider and their payment was reasonable. The Company intends to rely on the exemption from the value and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a)

About Fountain Asset Corp.

Fountain Asset Corp. is a merchant bank that provides financing, bridging loan services (back financing) and strategic financial advisory services to companies from a wide range of industries such as marijuana, oil and gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

Forward-Looking Statements

Certain information contained in this press release provides forward-looking information, which is information related to possible events, conditions or results of the Company’s operations, based on assumptions and measures. process and those that are inherently unstable. 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 growth and strong pipeline going forward. These forward-looking statements reflect the Company’s current expectations or beliefs based on information currently available to the Company. Forward-looking statements are subject to numerous risks and uncertainties that could cause the Company’s actual results to differ materially from those expressed in the forward-looking statements, even if such actual results are realized or realized. very, very likely. there is no guarantee that they will have the expected effects on, or effects on, the Company. Factors that could cause actual results or events to differ from current expectations include, among other things: the level of bridge loans and equity investments completed, the nature and quality of the debt security and the type and the value of equity investments, and other Risks disclosed under the heading “Risk Factors” and elsewhere in the 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 or other events or results. Although the Company believes that the assumptions contained in forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on such statements. the reason for the uncertainty there..

Neither the TSX Venture Exchange Inc. or its Securities Services Provider (as that term is defined in the regulations 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.