Custom manufactured QuestCubes will begin with a shipment of 165 modular testing sites to be installed in shopping centres across the United States
QuestCap Announces Closing of Second and Final Tranche of Private Placement Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Sept. 01, 2020 (GLOBE NEWSWIRE) -- QuestCap Inc. (“QuestCap” or the “Company”) (CSE:QSC; FRA:34C1) has entered into a purchase order term sheet with Xtreme Cubes Corp. respecting the manufacture of modular steel pod structures which will serve as testing centres for QuestCap’s wholly-owned subsidiary, Collection Sites, LLC and its COVID-19 “Test Before You Go” campaign first launched in August 2020 in Las Vegas, Nevada.
Collection Sites Branded Portal: https://testbeforeyougo.com
According to the term sheet, QuestCap has engaged Xtreme Cubes to deliver an initial order of 165 QuestCubes to be placed in shopping centres across the United States. The cubes will be branded as ‘QuestCubes’, licensed by CLIA registered Alcala Labs, and staffed by trained technicians offering COVID-19 antigen and IgG/IgM antibody testing. The “Test-Before-You-Go” campaign and operations will be managed by Collection Sites, LLC.
Xtreme Cubes Corp. is part of the Ahern family of companies. They have approximately 3,600 employees worldwide. The group of business units includes Ahern Rentals, Snorkel, Xtreme Manufacturing, and other related entities.
The Xtreme Cubes production facility is located in Henderson, Nevada. They manufacture modular buildings that are designed, engineered, fabricated and assembled to form any size structure utilized for many different applications. The cubes will be delivered by Ahern’s logistics division, boasting over 80 semi-trucks assuring a timely delivery and set up.
The QuestCube pods are 100 square feet in size and provide three separate and physically distant testing windows for conducting up to 150 tests per testing pod per day and can be placed anywhere with access to electricity and permits to do so. Testing services average USD$60 per test with a capacity of 15 tests per hour, operating 10 hours per day, seven days per week.
“This is another exciting development for our company as we remain committed and steadfast in our mission to bring affordable and accessible COVID-19 testing to Americans”, says Tim Shelburn, CEO of Collection Sites LLC. “We understand and have come to accept that the only safe way forward for all people is to understand where you are with the virus right now, so you can visit family, continue training, get back to studies or whatever responsibilities you’ve got in life with a clear mind,” says Mr. Shelburn.
The first wave of QuestCubes are expected to all be delivered by October 15th, 2020, prior to the start of a fall flu season. “When flu season arrives this fall, everyone with a scratchy throat, above normal body temperature, back ache or loss of smell will likely suspect they’ve got the COVID-19 virus and we expect that they will want to be tested. With this network of testing sites, we see ourselves serving that imminent need for fast and convenient testing services,” says Mr. Shelburn.
“We are committed to restoring some semblance of normalcy across communities and areas of commerce,” stated Mr. Doug Sommerville, the CEO of QuestCap Inc. “In order to be effective in restoring people’s confidence so they can return to work, studies and life, we can provide a network of testing sites to improve access to testing and reduce the time to receive results. We anticipate that this agreement with Xtreme Cubes will allow us to roll out a national program in the United States of easily accessible, pop-up testing stations operating in our QuestCubes,” concludes Mr. Sommerville.
“Xtreme is excited to have been selected to rise to the occasion in playing a key role in a significant rollout of this network of QuestCubes”, says Brandon Main, CEO of Xtreme Cubes. “We appreciate the logistics, mechanics and required operational bandwidth to help Americans easily access testing sites that offer a quick and affordable testing experience” says Mr. Main.
Private Placement
QuestCap is also pleased to announce the closing of the second and final tranche (the “Second Tranche”) of the previously announced non-brokered private placement (the “Offering”) of units (the “Units”). The Company issued 7,244,500 Units as part of the Second Tranche at a price of $0.20 per Unit for aggregate gross proceeds of $1,448,900. The total gross proceeds of the Offering (tranches 1 and 2) was $3,000,000 and QuestCap issued a total of 15,000,000 Units.
Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Share at a price of $0.25 for a period of 24 months following the closing date of the Second Tranche.
We expect to use the net proceeds from the Second Tranche for general working capital purposes, to pursue acquisition opportunities and to expand testing capacity.
The Second Tranche is subject to final approval of the Canadian Securities Exchange. The securities issued pursuant to the Second Tranche will be subject to a four month and one day statutory hold period expiring on January 1, 2021. 7% finder fees of $210,000 were paid on the gross proceeds of the Offering (tranches 1 and 2) and a total of 1,050,000 finder warrants were issued in connection with the closing of the Offering (tranches 1 and 2).
About QuestCap Inc.
QuestCap Inc. (CSE:QSC; FRA:34C1) is a social-impact investment company. Through QuestCap’s three divisions, MedQuest, TechQuest and ClimateQuest, it seeks, secures and funds recognized sciences, technologies, and solutions that impact our global community today.
The QuestCap executive team is complemented by a panel of global advisors that provide expertise across industries and geographies. This panel includes prominent immunologist Dr. Lawrence Steinman and Dr. Glenn Copeland, who has 45 years of experience in orthopedic treatment, foot and ankle care, and sports medicine.
QuestCap’s primary focus is the sale of COVID-19 IgG/IgM antibody tests authorized by FDA under an EUA for use by authorized laboratories. This is achieved largely through two acquisitions: 100% of Nevada-based Collection Sites, LLC (“Collection Sites”) and 28% of Colombian Sanaty IPS (“Sanaty”). Collection Sites is setting up a series of QuestCube COVID-19 testing sites across the United States. The pop-up labs will be managed by Collection Sites and powered by Alcala Testing and Analysis Services, a CLIA-licensed laboratory based in San Diego, California. Appointments and payments will be handled through the online portal www.testbeforeyougo.com. Sanaty is setting up a series of full-service medical clinics offering a complete COVID-19 testing solution.
Other recent MedQuest investments include: $1M into Sunnybrook Hospital’s Research Group for Emerging and Respiratory Viruses (such amount payable in equal $250,000 installments), $0.5M into Sinai Health Foundation’s research in COVID-19 diagnostic testing (such amount payable in equal $125,000 installments).
QuestCap provides financing for a diverse range of entities in exchange for pre-determined royalties or distributions, or acquires all or part of one or more businesses, portfolios or other assets.
For additional information, please contact:
Doug Sommerville, CEO
+1-416-301-5418
Doug.Sommerville@questcapinc.com
For US media enquiries, please contact:
Veronica Welch
veronica@vewprmedia.com
+1-508-643-8000
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the purchase of modular pods; the number of modular pods that we expect will be constructed and shipped by Xtreme Cubes; the number of COVID-19 tests that can be conducted per day at each modular pod; the anticipated revenues to be generated from testing done at each modular pod; the plan to rollout the modular pods in the United States; the timetable for any such rollout; the closing of the Offering; the intended use of proceeds of the Second Tranche; the pursuit by QuestCap of investment opportunities; and the merits or potential returns of any such investments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c47ac0eb-ec8d-4923-8180-fe6428818eeb
QuestCap Enters into an Agreement with Xtreme Cubes
QuestCube Pop-up COVID-19 Testing Station