Quinsam Capital Corp C.QCA

Earnings

[noremac50]

https://www.newsfilecorp.com/release/104276/Quinsam-Announces-Q32021-Results Quinsam Announces Q3/2021 Results Toronto, Ontario--(Newsfile Corp. - November 18, 2021) - Quinsam Capital Corporation (CSE: QCA) ("Quinsam" or the "Company") wishes to announce its Q3/2021 results, with a net loss of $0.7 million ($0.01 per share basic, $0.01 fully diluted) versus net income of $0.8 million ($0.01 per share basic, $0.01 fully diluted) in Q3/2020. Investors can access the Company's full financial statements on sedar.com. "At September 30, 2021, we had net assets of $0.341 per share, still up materially from our December 31, 2020 level of $0.317 per share," said Roger Dent, CEO of Quinsam. "Our NAV was down marginally from $0.345 at the end of Q2/2021, with the impact of our Q3/2021 loss being offset to a significant degree by the favourable impact of our normal course issuer bid repurchases of shares at a discount to NAV. We also paid a dividend of $0.00125 per share. Our NAV decline in the quarter was only about 1%." Q3/2021 Results & Update After a strong performance in Q1/2021, the overall tone in the small cap market moderated in Q2/2021. In Q3/2021, small cap markets remained subdued with significant volatility in many parts of the market. The TSX Venture Composite index declined from 960.69 on June 30, 2021 to 858.87 on September 30, 2021, a decline of 10.6%. "We had hoped for a better result in Q3/2021," said Roger Dent, CEO of Quinsam Capital. "While our NAV did not grow in Q3/2021, as has been the case for some time, we have continued to move into newer investments where we see better appreciation potential." Quinsam had two issuers with material liquidity events early in Q3/2021: Agriforce Growing Systems and Hempsana. Unfortunately, in the context of the difficult small cap market, both of these companies saw share price declines following their listings on no reported negative developments. Accordingly, these events did not contribute to NAV growth. In Q3/2021, we also received the full repayment of our loan to Herbiculture Inc., a Maryland dispensary operation. We retain an option to acquire 30% of the dispensary. In October 2021, our investee PMML went public under the name Rivalry Corp. This has been a very successful investment for us. In 2016, we purchased $50,000 of units at the equivalent of $0.225 (including a full warrant coverage at C$0.225) versus the current share price of about $3 per share, similar to our Q3/2021 carrying value. Quinsam expects liquidity events in the coming months by a number of issuers. While Q3/2021 liquidity events did not contribute to NAV, we are hopeful that upcoming liquidity events will have a more favourable impact. Some issuers where we expect liquidity events in the coming months include Liquid Meta (crypto currency liquidity provider), INX (SEC-cleared crypto currency trading platform), Pluribus (software roll up), Strategic Minerals Europe (tin), Forrest Innovations (mosquito control technology) and Givex (payment processing technology), As we move into 2022, we are also looking forward to listings by Above Food (plant based food), Music Royalties, Peninsula Capital (high yield US residential real estate), Gefion (innovative transdermal drug delivery technology), Chargerquest (electric car charging stations), Green Stripe (cannabis), Budbank (cannabis), Canada Energy Partners (Gabon oil & gas), Pfane (circuit board recycling) and other investee companies. We have acquired positions in recent months in Givex, Strategic Minerals Europe, Roo Gold, Zodiac Gold, Pfane, ChargerQuest and Forrest Innovations. Issuer Bid In Q3/2021, Quinsam acquired 2,609,500 shares pursuant to its issuer bid to acquire up to 5,174,605 shares that commenced on August 31, 2021 and will terminate on August 30, 2022. As a result of the purchases in Q3/2021, to date the Company has acquired 2,609,500 shares pursuant to this issuer bid. Quinsam has now repurchased and cancelled 19.6 million shares since 2018 pursuant to its issuer bids, resulting in significant NAV accretion for remaining shareholders.

[mercedesman]

Actually much better than I expected.  NAV has held up  A good number of upcoming liquidity events and... some interesting diversification of assets.  MM     

[cgytrader]

I agree. And with the financials now out can probably restart share repurchases. See how those liquidity events play out.

[RonPiano]

Am I reading correct that Roger sold our Agri position?  If yes, do we know at what price?  It has had some wild action and some pretty juicy highs.  Hopefully if sold, was able to get a nice exit. 

[cgytrader]

@RonPiano: Per Oct 28, 2021 news Release: "AgriForce Acquisition On October 27, 2021, AgriForce announced the signing of a definitive agreement to acquire a large and EBITDA-positive European agricultural consultancy. The shares rose sharply on the news on over 200 million shares of trading volume. Quinsam had retained its 353,473 shares of AgriForce going into this announcement. While we

[RonPiano]

Thanks for that! I'm starting an AGRI position this week. Almost pulled the trigger the day of that $7 spike a couple weeks back and luckily didn't fomo in.  Also buying some warrants

[cgytrader]

I also thought about going in but didn't. Been burned one too many times over the past few years with anything related to cannabis and MSO's.  One thing to note on the warrants is they are like a $6USD exercise price so that's quite an appreciation required but they are good for a number of years so may not be a bad option. It should still follow the price movements slightly. In

[noremac50]

I've added 2500 shares of AGRI this week/today. closing in on 15k shares, They are bing featured on "B-TV" (BNN Bloomberg) https://b-tv.com/btv-highlights-pontus-protein-gratomic-goldshore-agriforce-hire-technologies-btv-ep-367/ $HIRE is also being featured. Which I also own (and added 3500 shares today). check insider buying. A lot of positives with $AGRI. their last LOI acquisition

[cgytrader]

Thanks for the share noremac50! I'll have to take a look and watch it.  Between AGRI and PMML I think QCA could have a substantial return from those and should be able to max out the NCIB well before the expiration date in 2022 based on interest receivable alone on the debentures.  I have wondered at what point the dividend may increase also. If Roger can get QCA's float

[mercedesman]

Would take about 4 years to get the share count down to 90 million( from now a little over 100 million)  while the NCIB can reduce the qty by 5 million/ year, the new options paid out to mgt each year increases the share count by about 2.5 m as I recall. MM  

[cgytrader]

MM, I suppose that is true. Right now there are 6,740,000 options available (5,073,333 vested) but 4,240,000 of the options are exerciseable at 0.19 or greater, with 2,000,000 options at 0.48 or 0.60 which will almost certainly expire unexercised so unless they give themself a huge option distribution I don't really count the existing options and I may welcome an issuance because if it is at

[TheSam]

I have been following this board for over a year now, but this will be my first post/reply on it. I myself own 80k in shares, if that helps at all. I would definitely support a collective letter to Roger. Roger needs to know us shareholders are getting tired of this huge discount to NAV. There needs to be more outreach and promotion for Quinsam.

[mercedesman]

Thx Sam By way of example I have mentioned BLR as a smaller fund ($ 6-$8M portfolio) that invests primarily in cannabis stocks as well. They have had 25 NR's for 2021 and trade at about 2 X NAV/sh By contrast, QCA has had only 10 NR's for 2021.  And despite paying a dividend,  has traded at about, on average, 1/2 its NAV/sh for at least a year or so.  Lately it has been