GC-Global Capital Corp.

GC-Global Capital Corp.

May 01, 2007 09:30 ET

GC-Global Capital Corp. Announces its Financial Results for the Year Ended December 31, 2006

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - GC-Global Capital Corp. ("Global") (TSX VENTURE:GDE.A) is pleased to announce its financial results for the year ended December 31, 2006.


- Net income for the year of $2.3 million ($0.15 per share);

- Loan portfolio increased 71% to $11.6 million, as compared to $6.8 million in 2005;

- Net asset value per share of $1.18 plus another $0.01 in unrealized gains on Global Capital's portfolio investments;

- Total assets as at December 31, 2006 of $20.0 million as compared to $18.0 million as at December 31, 2005;

- Twelfth consecutive quarterly profit;

2006 Operating Results

As at December 31, 2006, Global Capital had net income of $2.3 million or $0.15 per share compared to a net income of $4.9 million or $0.35 per share in 2005. However, the Company earned a non-recurring gain on the sale of an investment in 2005 of $2.0 million as well as the Company's recording of a future tax gain of $1.5 million in 2005, both of which were the result of an amalgamation. The outcome shows Global Capital's organic growth in net income to be $2.3 million in 2006 over organic net income of $1.4 million in 2005. This translates into an increase of 64% year-over-year.

As at December 31, 2006, Global Capital had a loan portfolio of $11.6 million that included companies in such industries as information technology, real estate, resource companies, industrial manufacturing and film distribution. The loans were provided to public companies, private companies and individuals. In addition, at year end Global Capital had $1.5 million in cash and short term investments, $4.6 million in portfolio investments with a fair market value of $4.7 million, $0.09 million in other assets and $1.4 million in future income taxes.

Chief Executive Officer, Jason Ewart said, "2006 was our third full year of operations at Global Capital. We are pleased to report to our shareholders a strong increase in our organic profit and a growing loan portfolio." He added, " Looking out into 2007, we continue to see a high volume of deal flow from which we will be able to continue to implement our services as bridge loan specialists within Canada's public and private small-cap sector."

Subsequent Transactions

On March 16, 2007, Global Capital completed an equity offering, for gross proceeds of approximately $5.5 million through the issuance of 4,782,609 units at a price of $1.15 per unit. The offering included a full exercise of the green shoe option by the underwriters for $500,000. Each unit is comprised of one subordinate voting share and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase an additional subordinate voting share at a price of $1.50 per share at any time and from time to time until September 16, 2008. The underwriting syndicate was led by Laurentian Bank Securities Inc. and included Research Capital Corp.

Change in Directors

Three directors, Hubert Marleau, Mark Busgang and Kent Smith, who have long served the interests of Global Capital shareholders, will retire from the Board at this year's Annual General Meeting. They served with distinction and dedication throughout all stages of our Company's growth. We greatly appreciate the wise counsel they have provided to the Board and management over the last three years and wish them the very best in the future.

2006 Audited Financial Statements and MD&A

A full set of the 2006 audited financial statements and the Management Discussion & Analysis have been filed on SEDAR and are available on the Company's website at www.gcglobalcapital.ca.

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

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.

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.

"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."

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