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Bullboard - Stock Discussion Forum 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.... see more

CSE:QCA - Post Discussion

Quinsam Capital Corp > Quinsam Announces Q1/2021 Results and Update
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Post by noremac50 on May 26, 2021 8:57am

Quinsam Announces Q1/2021 Results and Update

https://www.newsfilecorp.com/release/85250/Quinsam-Announces-Q12021-Results-and-Update

Toronto, Ontario--(Newsfile Corp. - May 26, 2021) - Quinsam Capital Corporation (CSE: QCA) ("Quinsam" or the "Company") wishes to announce its Q1/2021 results, with net income of $3.6 million ($0.03 per share basic, $0.03 fully diluted) versus a net loss of $2.6 million ($0.02 per share basic, $0.02 fully diluted) in Q1/2020. Investors can access the Company's full financial statements on sedar.com. In addition, Quinsam is pleased to announce an update on recent events.

"At March 31, 2021, we had net assets of $0.35 per share, an increase of 10.2% from our December 31, 2020 level" said Roger Dent, CEO of Quinsam.

Q1/2021 Results

Market conditions continued to be broadly favourable in Q1/2021 which helped the valuations of several of our publicly-traded investments. This also improved the prospects for our private company and debt investments, although our carrying values were not necessarily impacted.

We took advantage of liquid markets and exited a number of share positions including Skylight Health, Nexe and Helix TCS. All were solidly profitable investments for us.

We saw a significant increase in the valuation of our shares in private company New Hope Medical Group as the company raised funds at 4x our cost base. We also saw a significant increase in the value of our City View Green shares, which increased from $0.065 to $0.09. We saw a material increase in the value of our Nutritional High share position, which we largely exited in the quarter.

We purchased and subsequently sold a number of unit new issues in the quarter. Most notable were profitable investments in Halo Labs, Bigg Digital Assets, Excelsior Mining and Tetra Bio-Pharma.

"Overall we are quite happy with our Q1/2021 results" said Roger Dent. "We reported a solid financial result. Ongoing favourable market conditions continue to provide a viable environment for liquidity events for our private company investments. So far in 2021 we have seen liquidity events by Cannus Partners (trading as Ikanik Farms) and Wildpack. We expect to see quite a few more in the coming months including Agriforce, PMML, Pluribus, Pathway Health, First Helium, Green Impact, INX, Xebra, Green Stripe and Budbank/Trees."

Update

After a very strong performance in Q1/2021, the overall tone in the small cap market has moderated in Q2.

We have highlighted that one of our investee companies, Agriforce Growing Systems Ltd., has filed an S-1 Statement to facilitate an initial public offering in the United States. While there is no certainty that the IPO will be completed, we currently expect the IPO to close in Q2/2021. If the IPO is completed in the target price range, we expect to see a strong gain on our share position.

We are looking forward to a listing in the near term by PMML, which operates the Rivalry e-sports betting platform. This is poised to be one of Quinsam's most successful investments. In 2016, we purchased $50,000 of units at C$0.05 (including a full warrant at C$0.05) which we carried at an aggregate of approximately C$800,000 as at March 31, 2021 based on PMML's then most recent US$0.34 per share equity financing. We understand that the company has sold and will shortly close a financing at US$0.58 per share and expects to list in Q3/2021. The US$0.58 price implies an increase in value of approximately US$480,000 on our aggregate holding versus our March 31, 2021 carrying value.

We acquired debentures and warrants of Cannus Partners some years ago. This company listed in April 2021 as Ikanik Farms and has traded at a solid premium to our cost.

In Q1/2021, we acquired $250,000 of units of Wildpack, a co-packer of canned beverages. Wildpack commenced trading last week and the units have increased in value by a solid margin based on recent trading versus our unit cost of $0.90.

In recent months, Quinsam has invested in a number of other new companies including Music Royalties, Pluribus, Budbank/Trees, First Helium, Peninsula Capital, Virotek, INX, Above Food, Pathway Health, Green Impact, Orchid Ventures and Current Water Technology.

We have seen improving liquidity in some of our older cannabis positions. Cansortium, Stem Holdings, Helix TCS and Aion have all recently repaid our convertible debentures. FlowerOne completed a debt restructuring and we have seen a strong subsequent increase in the value of our holdings. Inner Spirit has received a takeover bid and the value of our convertible debentures has also improved.

"Small cap market conditions have continued to be favourable" said Roger Dent, CEO of Quinsam. "While we want to take advantage of this market, we are being cautious about making new illiquid investments based on current euphoria."

Issuer Bid Update

Quinsam's issuer bid was not active in Q1/2021 because the bid was in trading black-out awaiting release of our Q4/2020 results. The bid will be permitted to be active following this earnings release until June 30, 2021.

About Quinsam Capital Corporation

Quinsam is a merchant bank with a focus on "small cap" investments which it believes are undervalued. We do not invest on behalf of third parties or offer investment advice.

Generally, Quinsam does not believe that individual investments are material events. Quinsam may choose to announce certain investments once the company has finished buying its position because we feel that this information helps investors understand our decision-making process. Generally, Quinsam does not announce sale of investments.

For further information contact:

Roger Dent, CEO
(647) 993-5475
roger@quinsamcapital.com

Comment by theinvestor22 on May 26, 2021 9:20am
Good solid results.  Now they've got something to talk about.
Comment by noremac50 on May 26, 2021 10:28am
Dividend this week and most likely a resumption is share buyback. Possibly end of blackout period for Insider Buying as well?
Comment by mercedesman on May 26, 2021 4:36pm
Apparenlty the market doesn't think so... And QCA continues to trade at about 50% off of its market value, and 100% off of its "hidden, soon to be unlocked" value.  Maybe with some buybacks (use of cash) we can temporarily cut the discount to 40% off ? MM
Comment by SolexxX on May 27, 2021 5:42pm
Not very impressive. 2 cents for the first quarter and no love from the market at all. Just averaging this slow growth without any huge wins would put us a $43M NAV for 2021, 100% more than the stock is trading at. I would be interested in hearing what Roger's plan is for this year including his thoughts on the US and Canadian market and the likelyhood of the MORE act passing. I'm pretty ...more  
Comment by theinvestor22 on May 27, 2021 8:35pm
I'm getting fully diluted eps of 3.4 cents per share for Q1 and a sequential increase in NAV of slightly higher than that.  Where did you get your 2 cents from?
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