TORONTO, ONTARIO and HONG KONG, CHINA--(Marketwired - April 30, 2015) - Spackman Equities Group Inc. (the "Company" or "SEGI") (TSX VENTURE:SQG) today reported its audited financial results for the year ended December 31, 2014.
Revenue for the year ended December 31, 2014 was $23,120,000 compared to $2,178,000 for the same period one year ago, an increase of 961% for the year.
Net income for the year was $17,493,000 or $0.12 per share compared with net profit of $1,315,000 or $0.01 for fiscal 2013, an increase of 1,230% 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% stake in Spackman Entertainment Group Limited ("SEGL") resulting from its IPO and listing on the Catalist of the Singapore Exchange during the third quarter. The financial statements for the year ended December 31, 2014 reflect a change in accounting treatment resulting from the adoption by the Company effective January 1, 2014 of the Investment Entity Amendment to IFRS 10. The Company is now presented as an Investment Entity and its investment in SEGL is recorded at fair value.
At December 31, 2014, SEGI had $33,276,000 million, or $0.22 per share in cash or cash equivalents, marketable securities and investment in shares of public company.
Presently, the Company owns 38.77% of SEGL, and based on the most recent closing price of SEGL's shares of SGD 0.133, the market value of the Company's stake in SEGL is SGD $20,400,000 (CAD $17,870,000) or CAD $0.116 per SEGI 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 Limited. 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 December 31, 2014 and Management's Discussion and Analysis of the results are posted on SEDAR at
www.sedar.com.
Selected Highlights of Fiscal 2014
-- On April 17, 2014, the Company purchased 19,500 common shares, or 19.5%,
of Pravala (Asia) Limited, 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 CAD $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 SEGL. This restructuring of management
was undertaken in advance of the planned listing of SEGL on the Catalist
of the Singapore Exchange to avoid any potential conflicts of interest
between the Company and SEGL.
-- On July 11, 2014, SEGL registered its Offer Document and launched its
initial public offering ("IPO") in Singapore.
-- On July 18, 2014, the IPO placement was fully placed and closed, and
SEGL sold 69,440,000 shares, comprised of 50,000,000 new shares and
19,440,000 existing shares at SGD $0.26 (CAD $0.22) per share, raising
gross proceeds of SGD 18.1 million (CAD $15.8 million).
-- On July 22, 2014, the shares of SEGL 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 an aggregate of 8,745,000 common shares of
SEGI under the Company's stock option plan. The stock options are
exercisable at a price of $0.135 per share and expire five years from
the date of grant or earlier in accordance with the plan.
-- On December 1, 2014 Douglas Babcook was appointed a director of the
Company.About Spackman Equities Group Inc.
SEGI is an investment company that selectively invests into growth companies that possess proprietary know-how or technology, primarily in Asia. Our objective is to originate opportunities to invest into businesses at attractive valuations, build a compelling portfolio of holdings, and deliver the collective value of our investments to our shareholders.
The current holdings of SEGI consist of investments in public equities as well as privately-held companies. SEGI's holdings include:
-- 38.77% ownership of Spackman Entertainment Group Limited, which is
listed on the Catalist of the Singapore Exchange (ticker: 40E) and is a
leading Korean film and entertainment company. Visit
www.spackmanentertainment.com for further information.
-- 100% of SEGI Investments Limited, an investment company that invests
into public equities; and
-- marketable securities.Visit
www.spackmanequities.com for further information.
Forward-Looking Statements
Included in this news release may be matters that constitute "forward-looking" information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may" or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) has in any way approved or disapproved of the contents of this press release.