Communication and Valuations - Both Disturbing Prior to the recent conference call questions had been submitted for discussion through IR.
Those questions were not addressed during the call so a follow up enquiry (see below) was sent .
Subsequent to that message another email was sent.
Still no response.
So now I basically have 2 major concerns.
1.)
What does it take to get replies?
2.)
How does QSC calculate real value for investment dollars ?
The QSC 30% share of Glenco seems very unbalanced as we see nothing to explain or justify the value of that company and on top of our low minority shareholding, Dr. Copeland is being compensated in his "Advisory" capacity if the transaction completes.
This "may" all be fine, but we currently have no way of knowing how publicly raised money is being spent or if we are receiving value for it.
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Hello Nicholas; (Nikolas.Matysek@questcapinc.com)
As you know, I had submitted questions for discussion during the video conference/presentation in mid June.
When I followed up with you (copy to: Doug Sommerville) as they were not discussed during the open presentation you responded and stated they would be addressed afterwards.
To date I have not received further communication.
Would you please advise regarding the following concerns?
Sincerely;
xxx xxxxxx, Shareholder,
xxx xxxxxxx, ON
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Considering the importance to shareholders of an understanding regarding the manner in which the company determines the use of publicly raised funds and compensation of those directly benefiting from resources at the company, it is important that management ensures responses are clear and precise.
1.)
It is difficult to accept that Questcap is paying the equivalent of 2.22 Million Dollars for only a 30% interest in Glenco Medical.
That company has declared it is "Pre-Revenue" (I.e. no appreciable sales)
and
No documentation has been provided to inform shareholders of Glenco’s revenue forecast, general business model or profitability prospects.
How has valuation been determined?
2.)
Why has Questcap not earned a significantly higher ownership position in Glenco Medical?
Does the Glenco Medical Balance Sheet indicate asset value exceeds liabilities by 6 million Dollars
or
Is valuation based upon "Goodwill"?
Note: Comment in blue italics were inserted after the questions were submitted for the webinar.
The 6 Million Figure must be considered with context.
If a 30% Interest in the company = 2.22 mill. Then 100/30 x 2.22 = 7.4 Million.
Therefore the 6 Million asset value allows for a Goodwill Factor to Dr. Copeland.
3.)
Why has the company sought "Safe Harbor" protection?
Is there some aspect of the declared information deemed to be questionable or misleading?
Or
Are there considerations for future re-alignment or re-purchase of the shares being issued?