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Quinsam Capital Corp C.QCA

Alternate Symbol(s):  QCAAF

Quinsam Capital Corporation is a merchant bank with a focus on small-cap investments. The Company is focused on the small-cap market with early-stage investments in the technology, healthcare, mining exploration, e-sports, and cannabis markets. The Company’s business may encompass a wide range of activities including acquisitions, advisory services, lending activities and portfolio investments. It invests its capital for its own account in assets, companies, or projects. The Company does not invest on behalf of any third-party and does not offer investment advice.


CSE:QCA - Post by User

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Post by havana888on Dec 07, 2018 7:37am
135 Views
Post# 29080783

New Update !!!...very important and great !!!

New Update !!!...very important and great !!!TORONTO, Dec. 07, 2018 (GLOBE NEWSWIRE) -- Quinsam Capital Corporation (CSE:QCA) (Quinsam or the Company) is pleased to provide an update to its investors in light of recent declines in the share prices of many cannabis companies. There has been across-the-board weakness in cannabis share prices in recent weeks, said Roger Dent, CEO of Quinsam. We think that the weakness has been caused by a number of factors. In some cases, shares were likely overvalued. We have also seen an impact from buyer exhaustion due to the very large number of new issues and tax-loss selling. We have seen some disappointments in operational results and we have seen an impact from the short-sell report on Aphria Inc. All in all, it has been a pretty tough environment in the sector. While the stock market has cooled, in our opinion the secular growth opportunity in cannabis remains intact. We remain strong believers in the sector and continue to find opportunities that we think are very attractive. Lower share prices improve the outlook for future performance. Quinsam has been increasingly pleased with its decisions to exit many names over the last few months. Quinsam announced a number of divestitures in its press release of October 24, 2018. Since that date, we made additional divestitures including our remaining shares in GTEC, C21, Next Green Wave and Biome. We completed the sale of all of our Planet13 Holdings shares following our warrant exercise. We also took profits in Green Growth Brands. While we have taken profits in a large number of names over the last six months, we have added to two of our Canadian ACMPR holdings: Ndiva and Eve & Co. In both cases, we see them as sound businesses with attractive valuations and the prospect of near term cash flow generation, said Roger Dent. In the universe of publicly-traded Canadian ACMPR operators, these two together with Sproutly are currently the most interesting opportunities we see. Quinsam continues to focus most of its new investments on opportunities outside of Canada. Largely due to delays brought on by the large volume of new issue activity and associated backlogs with listing applications, some of the liquidity events that we highlighted in our press release of October 2, 2018 have been deferred. However, at this time we currently expect all of these liquidity events to proceed in either Q4/2018 or Q1/2019. We expect Quinsam to see a solid number of liquidity events in Q1/2019, said Roger Dent. Given that our results depend on future market activity, we do not forecast our performance. However, we can say that at present we expect our investments to strongly outperform the cannabis sector in Q4/2018. We note that our quarter-to-date includes some large wins including Acreage, Xanthic/Green Growth Brands and Cannamerica. At the same time, we have seen some of our winners give back part of their gains, including Sproutly and Rocky Mountain. Regardless of the Q4 result, our shares trade at a strong discount to our net asset value and our issuer bid has been an active buyer, with 570,000 shares purchased in November 2018, said Roger Dent. About Quinsam Capital Corporation Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. Our merchant banking business may encompass a range of activities including acquisitions, advisory services, lending activities and portfolio investments. Quinsam invests its capital for its own account in assets, companies or projects which we believe are undervalued and where we see a viable plan for unlocking such value. We do not invest on behalf of any third party and we do not offer investment advice. Generally, Quinsam does not believe that individual investments are material reportable events. Quinsam chooses to announce certain investments once the company is certain that it has finished buying its position because the Company feels that this information helps Quinsams investors understand its investment decision making process. Generally, Quinsam does not announce the sale of investments. For further information please contact: Roger Dent, CEO (647) 993-5475 roger@quinsamcapital.com
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