GC-Global Capital Corp.

GC-Global Capital Corp.

May 30, 2006 09:30 ET

GC-Global Capital Corp. Announces its Financial Results for the First Quarter Ended March 31, 2006

TORONTO, ONTARIO--(CCNMatthews - May 30, 2006) - GC-Global Capital Corp. ("Global") (TSX VENTURE:GDE.SV.A) announces its financial results for the first quarter ending March 31, 2006.


- Net income before taxes for the first quarter of $601,249;
- Earnings per share of $0.04 for the first quarter;
- Q1 revenues of $1,110,843;
- Increase of net asset value per share to $1.12 plus another $0.09
in unrealized gains on Global's portfolio investments, convertible
securities and warrants;
- Total loans arranged during the quarter of $4.6 million;
- Ninth consecutive quarterly profit

Management's First Quarter Comments

Since the closing of the amalgamation with E & E Capital Funding Inc. in late 2005, Global began 2006 with an increase in its size and the scope of its financial services. As at March 31, 2006 Global had net assets totaling $17.5 million compared to $16.8 million as at December 31, 2005 or $1.12 (December 31, 2005 - $1.07) per share plus another $0.09 in unrealized gains (December 31, 2005 - $0.11) on Global's portfolio investments. For the first quarter Global had net income before taxes of $601,249 or $0.04 per share compared to an income of $1,222,714 or $0.08 per share for the same period in 2005. The higher net income before taxes in 2005, can be attributed to approximately $600,000 in one-time capital gains for the Company. During the first quarter in 2006, Global provided $4.6 million in bridge loans to public companies, private companies and individuals as compared to $2.1 million for the corresponding period in 2005.

Chief Executive Officer, Jason Ewart commented, "We have spent the last two years building our track record within our bridge loan niche market, and with the passing of each quarter, Global continues to increase its visibility within the financial community and gain exposure to more deal flow." He added, "We are excited about Global's prospects in 2006. We ended the first quarter with approximately $1.4 million in unrealized gains in our portfolio of bonus shares, warrants and convertible securities. Also, subsequent to the quarter end the Briar Rose real estate bridge loan has been fully repaid. Going forward, Global is scheduled to receive a participation fee of approximately US$600,000 to be paid from the sale of the property lots located at the Briar Rose country estate community in Georgia."

Subsequent Events

On May 1, 2006, Global declared a cash dividend of $0.04 per share payable to shareholders of Global's subordinate voting and multiple voting shares. The dividend is payable May 31, 2006, to shareholders on record on May 15, 2006. It is the intention of the Company to pay out a portion of its future annual earnings to shareholders in the form of a dividend.

A full set of unaudited financial statements and related notes have been filed on SEDAR and are available on the Company's website at www.gcglobalcapital.ca.

Global's subordinate voting shares trade on the TSX Venture Exchange under the symbol "GDE.SV.A".

About Global

Global 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.

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