FAX Capital Corp. introduced its initial investments and announced its results for the three months ended March 31, 2020.
“Following the recent decline in equity markets, we have been actively deploying capital to take advantage of attractive valuations and establish significant early positions in high quality, growing, cash flow generative companies,” said Blair Driscoll, the Company’s Chief Executive Officer. “We’ve focused our investments on businesses that exhibit durable competitive advantages, operate with strong balance sheets and are led by capable and aligned management teams.”
“As a permanent capital investment vehicle, we have the ability to invest for the long-term and be opportunistic during times of market volatility. We maintain an active investment pipeline and expect the current market environment will provide openings to take advantage of attractive investment opportunities. In taking a thorough and patient approach to investing, however, we will not waiver from our disciplined diligence process in reviewing and structuring potential transactions, and will take our time to ensure only the highest quality investments are made.”
Results for the Quarter Ended March 31, 2020
During the quarter ended March 31, 2020, the Company’s book value per share decreased 4.8% from $4.34 per share at December 31, 2019 to $4.13 per share as at March 31, 2020. The 4.8% decrease is primarily attributed to the Company incurring an unrealized loss on its investments of $9.1 million in the quarter.
The favourable performance of the book value per share relative to the overall Canadian equity markets was largely attributed to the significant portion of the Company’s investable assets held in cash during this period and not exposed to the increased volatility from COVID-19.
Net loss for the quarter ended March 31, 2020 was $9.1 million, compared to a net loss of $56.9 thousand in the quarter ended March 31, 2019. During the quarter ended March 31, 2020, the Company had unrealized losses on its investments of $9.1 million.
For the three months ended March 31, 2020, FAX Capital’s basic and diluted loss per share was ($0.21), compared to a basic and diluted loss per share of ($0.07) for the same period in 2019.
Additional commentary on our investment activity can be found in the Company’s Management’s Discussion & Analysis for the quarter year ended March 31, 2020, available under the Company’s profile at www.sedar.com and on the Company’s website at www.faxcapitalcorp.com.
Other Information
Further information about FAX Capital, including FAX Capital’s Condensed Interim Financial Statements and Management’s Discussion & Analysis for the quarter ended March 31, 2020, is available under the Company’s profile at www.sedar.com and www.faxcapitalcorp.com, as is the Company’s recently published first Annual Letter to Shareholders. Supplemental materials in respect of the Company’s first quarter 2020 can be accessed on the Company’s website.
About FAX Capital Corp.
The Company is an investment holding company with a business objective to maximize its intrinsic value on a per share basis over the long-term by seeking to achieve superior investment performance commensurate with reasonable risk. The Company intends to invest in equity, debt and/or hybrid securities of high-quality businesses. The Company initially intends to invest in approximately 10 to 15 high-quality small cap public and private businesses located primarily in Canada and, to a lesser extent, the United States.
For additional information please contact:
Investor Relations
Sophia Tang, Investor Relations
Telephone: (416) 860-6108
Email: IR@faxcapitalcorp.com
Website: www.faxcapitalcorp.com
Media Relations
Tim Foran
Telephone: (416) 986-8515
Email: tim.foran@loderockadvisors.com