Difference Capital Financial Inc.
TSX : DCF

Difference Capital Financial Inc.

November 27, 2013 08:38 ET

Difference Capital Announces Third Quarter 2013 Results

TORONTO, ONTARIO--(Marketwired - Nov. 27, 2013) - Difference Capital Financial Inc. ("DCF") (TSX:DCF), a leading Canadian specialty financial services company, today announced its financial results for the quarter ended September 30, 2013. Highlights during this period include:

- DCF raised capital of over $101 million during this quarter.

- Total investable assets are now $183.9 million, up from $88.7 million at the beginning of the quarter.

- As at September 30, 2013, net asset value (NAV) increased to $134.9 million or $3.43 per share as compared to $88.7 million or $3.25 per share in the previous quarter.

- Revenue for the third quarter was $3.1 million up from ($1.1 million) in the previous quarter. This resulted in a net income of $69,537 compared with a net loss of ($2.1 million) in the previous quarter.

- Interest and dividends earned during the three months ended September 30, 2013 were $1.3 million compared to $0.4 million for the three months ended September 30, 2012.

- Advisory services revenue amounted to $0.4 million, bringing total advisory revenue to $0.8 million in 2013 year-to-date.

- Net gain on investments and marketable securities was $1.4 million compared to a net loss of $0.2 million in the third quarter of 2012.

Other highlights:

- DCF continues to build its team with the addition of technology experts Tom Liston and Dushan Batrovic.

- Advisory services business continues to grow with a total of 15 current clients, up from 6 clients at January 1, 2013.

- New investments during this quarter include Carta Worldwide, Blue Ant, iPowow Inc. and Aurinia Pharmaceuticals Inc.

- The investments subsequent to quarter-end include BuildDirect.com and Vena Solutions.

- DCF graduated from the TSX Venture Exchange to the Toronto Stock Exchange.

During this quarter, DCF closed its public offering of common shares pursuant to which DCF sold 12,000,000 shares with gross proceeds of $45,000,000. The common share offering was completed following the closing of the offering of convertible unsecured subordinated debentures for aggregate gross proceeds of $56,079,000. The total gross aggregate capital raised from the two public offerings was $101,079,000.

Executive Chairman, Michael Wekerle said, "We are pleased to announce strong third quarter results, which reaffirm our business model and selection of unique opportunities in the technology, healthcare and media space. We also remain excited about the growing advisory business model we bring to the marketplace."

The interim unaudited September 30, 2013 financial statements and management's discussion and analysis are available at www.sedar.com.

About Difference Capital Financial Inc.

Difference Capital Financial Inc. is a publicly-listed, Toronto-based specialty finance company focused on creating shareholder value through strategic investments in, and advisory services for, growth companies, particularly in the technology, media and healthcare sectors, as well as through opportunistic investments in undervalued financial assets and real property.

Cautionary Notes

This release includes forward-looking statements regarding DCF and its business. Such statements are based on the current expectations and views of future events of DCF's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release and the anticipated growth of the DCF business, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding achieving investment objectives, economic factors and the equity markets generally and many other factors beyond the control of DCF. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and DCF undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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