Difference Capital Financial Inc. has unveiled a $25.9-million net loss for the fourth quarter of 2014. It's the company's third steep loss in a row.
Michael Wekerle, a dragon on CBC's Dragon's Den co-founded Difference, a publicly traded merchant bank in 2012.
The company took a massive writedown in technology company WG Limited Ltd. in the fourth quarter. WG was one of the company's earliest investments and among its biggest disappointments. Difference sunk $26.4-million into the firm, which organizes communities of console video game players online. In the third quarter Difference valued WG Limited at $13.2-million. It now values its investment at $2.5-million.
In August. 2014, Difference put alternative energy company, Lignol Energy Corp, in which it had invested $18-million into liquidation. In a statement released after the close of markets on Friday, Difference said it expects to receive "partial recovery" on its debt investment in Lignol.
"We have continued to aggressively reposition our portfolio towards quality late-stage private equity opportunities said Henry Kneis, CFO of Difference in a statement. "By revaluing these investments we hope to improve investor confidence in our asset values."
The company will hold a conference call on Monday morning to provide more details on the quarter and its outlook for 2015.