GC-Global Capital Corp.

GC-Global Capital Corp.

April 30, 2009 09:30 ET

GC-Global Capital Corp. Announces Its Financial Results for the Year Ended December 31, 2008 and Declares Payment of a $0.025 Cash Dividend to Its Shareholders

TORONTO, ONTARIO--(Marketwire - April 30, 2009) - GC-Global Capital Corp. ("Global Capital") (TSX VENTURE:GDE.A) is pleased to announce its financial results for the year ended December 31, 2008.


- Net operating cash flow for the year of $917,556;

- Declaration of a $0.025 cash dividend to its shareholders;

- Net asset value per share of $0.98;

- Strong balance sheet with no debt.

2008 Operating Results

As at December 31, 2008 Global Capital had net assets totaling $19.7 million or $0.98 per share compared to $25.1 million or $1.23 per share as at December 31, 2007. For the year, Global Capital recorded a net loss of $4.16 million or $0.20 per share compared to a net income of $2.96 million or $0.15 per share in 2007. The net operating cash flow for the year was $917,556 as compared to a negative operating cash flow of $211,386 in 2007.

At year end, the Company's loan and convertible debenture portfolio amounted to $11.1 million, a decrease of 17% as compared to $13.5 million in 2007, primarily due to the Company receiving US$2,500,000 on December 31, 2008 as full repayment of one of its bridge loans. Due to a combination of non-repayment on two bridge loans and underlying lower security valuations, the Company decided to write-down $1,001,676 on its loan portfolio. This amount includes a general provision for loan losses in the amount of $200,000.

Total assets as at December 31, 2008 were $20.1 million compared to $25.6 million as at December 31, 2007. Included in total assets are $3.4 million in cash and short term investments (2007 - $3.4 million), $11.1 million in notes receivable, bridge loans and convertible debentures (2007 - $13.5 million), $2.7 million in portfolio investments (2007 - $5.0 million), $0.6 million in investment property (2007 - $0.6 million), $1.0 million in other assets (2007 - $1.9 million) and $1.2 million in future income taxes (2007 - $1.1).

Chief Executive Officer, Jason Ewart said, "2008 was our fifth full year of operations at Global Capital. As we are all aware, the global credit crisis had a dramatic effect on the world's economy in 2008. With that being said, the world's largest financial institutions suffered a balance sheet meltdown that has since then not remedied itself. Global Capital has not been totally immune to this market crisis." He added, "Our net loss and decrease in net asset value per share in 2008 was a combination of write-downs on our portfolio investments, equity kickers from bridge loans, subsidiary holdings, convertible debentures and foreign exchange losses. On the positive side, we were able to produce net operating cash flow of over $900,000 for the year as well as declaring a cash dividend of $0.025 per share for our shareholders. Looking out into 2009, we are confident about the potential of the bridge loan opportunities that we are currently transacting."

Declaration of a Cash Dividend

The Company is pleased to declare a cash dividend of $0.025 per share payable to shareholders of Global Capital's subordinate voting and multiple voting shares. The dividend is payable June 15, 2009 to shareholders of record on May 15, 2009. This marks the fifth year in a row that Global Capital has paid a cash dividend to its shareholders. As Management has stated in past press releases, 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.

2008 Audited Financial Statements and MD&A

A full set of the 2008 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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