Mr. Andrew Parks reports

FOUNTAIN ASSET CORP. ANNOUNCES ITS FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2023

Fountain Asset Corp. has released its financial results for the three months ended Sept. 30, 2023 (Q3 2023).

Highlights from three months ended Sept. 30, 2023:

• Net asset value (NAV) of $10.27-million (17 cents per share) at Sept. 30, 2023, compared with $11.0-million (18 cents per share) at June 30, 2023, representing a decrease of 5.6 per cent quarter over quarter on a per-share basis. NAV is calculated as the value of total assets less the value of total liabilities;
• Net comprehensive loss of $750,000 for the three months ended Sept. 30, 2023, compared with net comprehensive income of $110,000 for three months ended Sept. 30, 2022 (Q3 2022);
• Total loss from investment activity was $590,000, compared with total income of $260,000 for Q3 2022;
• Net realized losses on the sale of portfolio investments of $430,000, compared with net realized losses of $120,000 for Q3 2022;
• Net unrealized losses on portfolio investments of $170,000, compared with net unrealized gains of $380,000 for Q3 2022;
• Total expenses of $160,000, which included $20,000 of stock-based compensation, compared with $150,000 for Q3 2022, which included one cent of stock-based compensation;
• Operating expenses of $150,000, compared with $200,000 for Q3 2022.

Highlights from nine months ended Sept. 30, 2023:

• NAV of $10.27-million (17 cents per share) at Sept. 30, 2023, compared with $11.84-million (19 cents per share) at Dec. 31, 2022, representing a 10.5-per-cent decrease year to date on a per-share basis. NAV is calculated as the value of total assets less the value of total liabilities;
• Net comprehensive loss of $1.63-million for the nine months ended Sept. 30, 2023, compared with net comprehensive loss of $6.94-million for the nine months ended Sept. 30, 2022;
• Total loss from investment activity was $1.08-million, compared with total loss of $6.24-million for the nine months ended Sept. 30, 2022;
• Net realized losses on the sale of portfolio investments of $1.90-million, compared with net realized losses of $2.17-million for the nine months ended Sept. 30, 2022;
• Net unrealized gains on portfolio investments of $800,000, compared with net unrealized losses of $4.09-million for the nine months ended Sept. 30, 2022;
• Total expenses of $550,000, which included $70,000 of stock-based compensation, compared with $710,000 for the nine months ended Sept. 30, 2022, which included six cents of stock-based compensation;
• Operating expenses of $530,000, compared with $570,000 for the nine months ended Sept. 30, 2022.

During Q3 2023, the company saw a decrease in its portfolio of publicly traded companies, as a result of continued volatility and uncertainty surrounding global markets. The company also continued to dispose of non-core investment holdings that have been struggling in recent years and intends to use the proceeds from these dispositions to enter into new opportunistic investments that the company believes will ultimately yield greater long-term economic benefits.

The company continued to maintain low operating expenses in Q3 2023, which helped reduce the net comprehensive loss of the company. As at Sept. 30, 2023, the company's net assets were valued at $10.27-million or 17 cents per share, compared with $11.84-million or 19 cents per share at Dec. 31, 2022.

"In Q3 2023, Fountain continued to look for ways to exit non-core portfolio investments and utilized the proceeds received to strengthen its position in industry sectors it believes will benefit the company and contribute to achieving its growth-oriented goals. Although this quarter that resulted in the company continuing to realize losses on the sale of some of its investments, we are optimistic about the new recent investments made by Fountain as the company continues to build its portfolio," said Andrew Parks, chief executive officer of Fountain.

The Q3 2023 unaudited financial statements and the management discussion and analysis are available on SEDAR+.

About Fountain Asset Corp.

Fountain Asset is a merchant bank that provides equity financing, bridge loan services (asset back/collateralized financing) and strategic financial consulting services to companies across many industries such as marijuana, oil and gas, mining, real estate, manufacturing, retail, financial services, and biotechnology.

We seek Safe Harbor.