GC-Global Capital Corp. Announces Its Financial Results for the First Quarter Ended March 31, 2008
GC-Global Capital Corp. (“Global Capital”) (TSX VENTURE: GDE.A) is pleased to announce its financial results for the first quarter ending March 31, 2008.
Highlights from the First Quarter
– Net income before taxes for the first quarter of $412,891, an increase of 17% over the previous year;
– Earnings per share of $0.02 for the first quarter;
– Q1 revenues of $838,792, an increase of 13% over the previous year;
– The successful listing of its client company, Homeland Energy Group Ltd. on the Toronto Stock Exchange;
– Strong balance sheet with no debt.
Management’s First Quarter Comments
For the first quarter Global Capital had revenue of $838,792 compared to revenue of $742,331 for the same period in 2007. Net income before taxes was $412,891 or $0.02 per share compared to a net income before taxes of $353,898 or $0.02 per share for the same period in 2007. As at March 31, 2008, Global Capital had net assets totaling $24.6 million compared to $25.1 million as at December 31, 2007 or $1.21 per share as compared to $1.23 per share as of December 31, 2007. The decrease in the net asset value per share is primarily due to the US$0.235 closing share price of Global Development Resources, Inc. at the end of the quarter, which was down from its closing price at December 31, 2007 of US$0.35. Global Capital has a 14% ownership in Global Development Resources, Inc., and due to the new financial instrument accounting rule, Global Capital is required to record any unrealized gains and losses in its investments as other comprehensive income (losses).
During the quarter, the Company saw the successful TSX listing of its client company Homeland Energy Group Ltd. (“Homeland”) (TSX: HEG) and the conversion of its US$2,000,000 debenture in Homeland. Homeland is focused on energy exploration and development in Southern Africa. Over the last three years Homeland and its operating subsidiaries have raised and invested over US$55,000,000 into their mining operations. Today, Homeland owns three advanced development/pre-development coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States. In June of 2007, Global Capital provided US$2,000,000 to Homeland through a secured convertible debenture. In late February of this year, Global Capital converted its debenture into 3,241,000 common shares (post share-split) of Homeland Energy Group Ltd. The average cost per share equates to CDN$0.61 per common share. Homeland’s shares closed at $1.50 per share on May 30, 2008.
Chief Executive Officer, Jason Ewart commented, “We were pleased with the results in the first quarter. Revenue was up in each of our categories, Structuring Fees and Bonuses, Interest and Dividend Income and Gain on Sale of Portfolio Investments.” He added, “Although, the decrease in the market price of Global Development Resources, Inc. did have a negative effect on our net asset value per share, we have always viewed Global Development Resources as a long-term investment, which has to date, provided Global Capital with access to great lending opportunities.”
Subsequent to the End of the First Quarter
On April 1, 2008, Global Capital declared a cash dividend of $0.06 per share payable to shareholders of Global Capital’s subordinate voting and multiple voting shares. The dividend was payable May 30, 2008, to shareholders on record on April 30, 2008. This marked the fourth year in a row that Global had paid a cash dividend to its shareholders.
A full set of unaudited financial statements and related notes have been filed on SEDAR.
About GC-Global Capital Corp.
Global Capital is a merchant bank which provides bridge loan services (asset back/collateralized financing), to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology.
Forward-Looking Information
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 forward-looking 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 Company’s 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 Company’s 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: GC-Global Capital Corp. Jason G. Ewart (416) 488-7760 Website: www.gcglobalcapital.ca
SOURCE: GC-Global Capital Corp.