Professional Documents
Culture Documents
CORPORATE OVERVIEW
Fall 2016
DISCLAIMER
These materials include certain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Other than statement of historical fact, all statements in this material, including,
without limitation, statements regarding fair values of marketable securities, investments, bridge loans,
convertible debentures, estimated asset retirement obligations, and future plans and objectives of the
Company, are forwardlooking statements that involve various known and unknown risks, uncertainties and
other factors. There can be no assurance that such statements will prove accurate. Actual results and future
events could differ materially from those anticipated in such statements. Readers are cautioned not to place
undue reliance on these forward-looking statements that speak only as of the date of these materials.
Important factors that could cause actual results to differ materially from the Companys expectations include,
without limitation, the level of bridge loans completed, the nature and credit quality of the collateral security,
the sufficiency of cost estimates for remaining reclamation obligations as well as those factors discussed in the
Companys documents filed from time to time with the TSX Venture Exchange, Canadian securities regulators
and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to
the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.
1) We provide the average investor the opportunity to access pre-public deals that
are typically only available to institutional investors.
2) We give private companies the growth capital and advisory services necessary to
prepare them to access publicly raised capital.
3) Management and Board Members of Fountain are aligned with our Shareholders
to continue to create Shareholder value - we have our own skin in the game.
Stable Financial
Position
The Company uses limited leverage and has enough fixed income cashflow to
cover all operating expenses.
As a result, Fountain is positioned well to benefit in down markets.
Rising Portfolio
Value
Unique Origination
Sources
Management, the Board and key investors provides the Company with unique,
non-competitive deal flow channels.
Disciplined underwriting standards causes Fountain to be very selective of the
transactions that are funded.
Hands On
Approach
Extensive Experience
and Relationships
public
high margin product line
growing revenues
pre-public, cashflowing
2016
2015
2014
public, profitable
disrupting sugar
Fountain management hands
on in restructuring
accretive acquisition strategy
public, profitable
INVESTMENT THESIS
Later stage companies with a six month to two year horizon from being public
Committed, experienced, and reputable management teams
Companies with growing revenues with significant upside growth to be facilitated by our
capital and advisory support
Market Capitalization $ mm
75
50
IPO
Prior to closing any investment, Fountain works closely with the investment
bankers in order to obtain direct feedback as to the viability and best approach for
an IPO.
MARKET OPPORTUNITY
In recent years, there has been a void in the North America marketplace for small companies
to procure adequate and timely financing to fund the growth of their businesses.
Further, much of the Canadian based small cap activity has been focused throughout the last
10 years on resource based investments that has created an underweight position in nonresource based companies in the Canadian capital markets environment.
Additionally, pension funds and similar institutional investors are looking at investing a
minimum of $15 million which does not fit the criteria for most small cap companies. Further,
the institutional investors are looking for target companies that have minimum market
capitalization $100+ million putting it out of the reach for many companies seeking financing.
Micro Cap
Middle Cap
Deal Size
$1mm
Solid Businesses
Visibility to Exit
Proactive Monitoring
Portfolio Diversification
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DISCIPLINED EXECUTION
Active pipeline of investment opportunities generated by proactive sourcing and an established network
Selection process driven by extensive criteria in areas of quality of earnings, asset validation, business assessment, market
acceptance , management pedigree and ability to execute
Ability to analyze before entering transactions the downside risk and viability to exit, refinance or asset disposition
Disciplined due diligence and active monitoring designed for small and middle market companies
Viability of concept and knowledge of asset classes and capital market operations
Validate exit scenarios before funding easy to get into a deal, challenge is to get out
Proven exit strategies and predictability of downside recovery valuation
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FA
BUY
Fountain sold
throughout 2015 & 2016
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A private transaction for Fountain in late 2013, and funded until today.
Advantagewon finances auto repair loans, and uses the RSLA (Repair Storage Lien Act) to get automatic first security on the
vehicle. 40%+ return on the average loan.
RSLA lien allows Advantagewon to REPO the car within ~60 days of a missed payment. No exceptions.
Approval for a loan is done within seconds online. All you need to input is your VIN and mileage, and 50% of the value of the
vehicle is automatically approved for a loan.
Dealers are easily sold on offering the Advantagewon financing to their customers, as it allows them to keep the business they
otherwise have to turn away, with no skin off their back.
Fountain has invested over $3mm into Advantagewon, and recently secured an institutional facility to fund Advantagewons
hockey stick growth.
Fountain is a significant debt provider and equity holder in Advantagewon.
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SUCCESFULL EXITS
Selection of our Successful Exits
The Intertain Group Ltd.
VIQ Solutions
Poydras Gaming Finance Corp.
3TL Technologies Corp.
Royal Nickel Corp.
Kids Futures Inc.
Victhom Human Bionics Inc.
Adoption Technologies Corp.
Iseemedia Inc.
ESI Entertainment Systems Inc.
Homeland Energy Group Ltd.
IOU Financial Inc.
W3 Solutions Inc.
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FOUNTAIN STOCK
COMPELLING STOCK PRICE TODAY
Book Value
As of Q2, Fountains audited Book Value was $0.21 per share.
In addition there is a $26mm capital tax loss benefit, which
increases the book value to $0.30 per share.
AT THE CURRENT MARKET PRICE OF $0.21, OUR STOCK IS
TRADING AT A DISCOUNT TO OUR BOOK VALUE.
0.21
Q2 Book Value
13,338,728
2,600,000
15,938,728
Book Value/Share
0.30
29%
Additional Value
The above stated 30c Book Value does not include additional value we expect to unlock on some of our holdings which include:
1) Financing Company: we own a convertible option for 50% of a car repair financing company called Advantagwon Inc., which has a
growing national portfolio and profitable operations.
2) Slot Machine Company: We own significant equity stake in TSXV listed Poydras Gaming Finance Corp., a slot machine company
tracking to hit $10mm EBITDA for 2016 and just completed a $30mm refinancing.
3) Oil Company: Slated to go public in Q4 2016, and Fountain holds a high yielding securitized convertible debt in this Texas based
company.
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SUMMARY
Experienced Management team with long term relationships within North
Americas investment, brokerage, legal and accounting sectors thus creating
multiple channels of deal flow.
Fountain takes a hands on approach in all investments made, leveraging
management's expertise to optimize the operations and capital structure of all
their investee companies.
Capital tax-loss benefits of $26 million (acquired) to shield future profits for the
benefit of shareholders.
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CORPORATE INFORMATION
Authorized Capital Stock
Unlimited Subordinate Voting Share (1 vote per share)
Unlimited Multiple Voting Shares (4 votes per share)
Issued and Outstanding
Subordinate voting shares
Multiple voting shares
Total shares
53.02 mm
1.03 mm
54.05 mm
Auditors
Collins Barrow
Register & Transfer Agent
Equity Financial Trust
Exchange & Symbol
FA on the TSX Venture Exchange
Corporate Address
25 Adelaide St. East, Suite 1300, Toronto M5C 3A1
Corporate Website
www.fountainassetcorp.com
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