Mr. Richard Lee reports

SPACKMAN EQUITIES GROUP REPORTS 2014 YEAR END RESULTS

Spackman Equities Group Inc. has released its audited financial results for the year ended Dec. 31, 2014.

Revenue for the year ended Dec. 31, 2014, was $23.12-million, compared with $2,178,000 for the same period one year ago, an increase of 961 per cent for the year.

Net income for the year was $17,493,000, or 12 cents per share, compared with net profit of $1,315,000, or one cent per share, for fiscal 2013, an increase of 1,230 per cent for the year.

Both revenue and net profit for 2014 are records for the company and they reflect the increase in value of the company's 39.1-per-cent stake in Spackman Entertainment Group Ltd. resulting from its initial public offering and listing on the Catalist of the Singapore Exchange during the third quarter. The financial statements for the year ended Dec. 31, 2014, reflect a change in accounting treatment resulting from the adoption by the company, effective Jan. 1, 2014, of the investment entity amendment to IFRS 10. The company is now presented as an investment entity and its investment in Spackman Entertainment Group is recorded at fair value.

At Dec. 31, 2014, Spackman Equities Group had $33,276,000, or 22 cents per share, in cash or cash equivalents, marketable securities, and investment in shares of public companies.

Presently, the company owns 38.77 per cent of Spackman Entertainment Group, and, based on the most recent closing price of Spackman Entertainment Group's shares of 13.3 Singaporean cents, the market value of the company's stake in Spackman Entertainment Group is $20.4-million (Singaporean) ($17.87-million), or 11.6 cents per Spackman Entertainment Group share.

Regarding the results for the fiscal year 2014, Charles Spackman, chairman and chief executive officer of the company, said: "The record revenues and profit are significant milestones for the company and are a recognition of the substantial increase in the value of our investment in Spackman Entertainment Group Ltd. Moving forward, we will continue to focus our efforts on creating and delivering value for our shareholders."

The audited financial statements for the year ended Dec. 31, 2014, and management discussion and analysis of the results are posted on SEDAR.

Selected highlights of fiscal 2014

• On April 17, 2014, the company purchased 19,500 common shares, or 19.5 per cent, of Pravala (Asia) Ltd., an early stage Hong Kong company that is the exclusive Asia distributor of the mobile solutions of Waterloo-based Pravala Networks Inc., for a purchase consideration of $150,000 in cash.
• On June 24, 2014, the company appointed Alex Falconer as chief financial officer. Mr. Falconer succeeded Kyoungwon Na, who continued to serve as the chief financial officer of Spackman Entertainment Group. This restructuring of management was undertaken in advance of the planned listing of Spackman Entertainment Group on the Catalist of the Singapore Exchange to avoid any potential conflicts of interest between the company and Spackman Entertainment Group.
• On July 11, 2014, Spackman Entertainment Group registered its offer document and launched its initial public offering in Singapore.
• On July 18, 2014, the initial public offering placement was fully placed and closed, and Spackman Entertainment Group sold 69.44 million shares, comprising 50 million new shares and 19.44 million existing shares at 26 Singaporean cents (22 cents) per share, raising gross proceeds of $18.1-million (Singaporean) ($15.8-million).
• On July 22, 2014, the shares of Spackman Entertainment Group commenced trading on the Catalist of the Singapore Exchange under the symbol 40E.
• On July 30, 2014, the company granted stock options to five directors of the company to acquire up to a total of 8,745,000 common shares of Spackman Equities Group under the company's stock option plan. The stock options are exercisable at a price of 13.5 cents per share and expire five years from the date of grant or earlier in accordance with the plan.
• On Dec. 1, 2014, Douglas Babcook was appointed a director of the company.

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