TORONTO, ONTARIO--(Marketwired - May 29, 2017) - Quinsam Capital Corporation (CSE:QCA)(CSE:QCA.CN)(CNSX:QCA) ("Quinsam" or the "Company") today announced two new cannabis-related investments and released unaudited financial results for the quarter ended March 31, 2017.
Investments in I-5 Cannabis Holdings and Lakeside
Quinsam has made two investments in US cannabis-related companies in the last two weeks.
We committed to purchase shares and warrants in the capital of I-5 Cannabis Holdings Limited, a company that is acquiring a number of companies active in California and Washington in growing, extraction and dispensing of cannabis products. We understand that I-5 is hoping to go public in the coming months. "Two of the directors at I-5 - John MacPhail and Brock Daem - have significant experience in Canadian small cap markets," said Roger Dent, CEO of Quinsam. "I have confidence in their ability to create a successful public company. We think that our going-in valuation is compelling and we expect the company to move forward with a listing in 2017."
Quinsam had previously announced its intention to acquire a stake in a US based company intending to enter the US cannabis cultivation business, tentatively named GroBright. GroBright has an agreement to utilize the licences currently held by Nutritional High, which does not use them for cultivation. This investment has now closed and has been implemented through a purchase of convertible debentures and warrants in the capital of Lakeside Minerals Inc., a company which was previously listed in the TSX-V. Quinsam expects that Lakeside will apply to list its shares on a Canadian exchange in 2017.
Quinsam reported a net loss of $34,538 in Q1/2017 ($0.00 per share) versus a loss of $25,863 in Q1/2016 ($0.00 per share). The quarterly loss was after the deduction of a non-cash expense of approximately $6,000 for share-based compensation.
"We incurred a small loss in the quarter," said Roger Dent. "We wrote down in full our remaining $100,000 investment in convertible debentures of Axios Mobile Assets Corp. in the quarter, which more than accounted for the loss. We initially invested $150,000 in Axios and successfully exited $50,000 through conversion. Unfortunately, we did not sell the entire position." Quinsam does not expect to recover any further funds from its Axios investment, although the potential for recovery exists.
As previously announced, Quinsam's quarterly dividend was paid on May 19.
Quinsam's financial results and MD&A have been posted on sedar.com.
About Quinsam Capital Corporation
Quinsam is a merchant bank based in Canada. 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 Quinsam's investors understand its investment decision making process. Generally, Quinsam does not announce the sale of investments.
This press release may contain forward-looking statements relating to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent our beliefs regarding future events, which are inherently uncertain. Forward-looking statements can often, but not always, be identified by forward-looking words such as "anticipate", "believe", "continue", "expect", "goal", "plan", "intend", "estimate", "may", "project", "predict", "potential", "target", and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance.
By their nature, forward-looking statements require us to make assumptions which include, among other things, that (i) Quinsam will have sufficient capital under management to effect its business strategies, (ii) the business strategies will produce the results intended by Quinsam, and (iii) the markets will react and perform in a manner consistent with the business strategies.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes that the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct. Some of the risks and other factors that could cause actual results to differ materially from those expressed in forward-looking information expressed in this press release include, but are not limited to: market and general economic conditions, interest rates, regulatory and statutory developments, the nature of the Company's investments, the available opportunities and competition for investments, the concentration of the Company's investments in certain industries and sectors, reliance on key personnel, risks affecting the Company's investments, management of the growth of the Company, and exchange rate fluctuations. Readers are cautioned that the foregoing list of risks and factors is not exhaustive. Although the Company has attempted to identify important factors that could cause actual events or results to differ materially from those described in forward-looking information, there may be other factors that cause events or results to differ from those intended, anticipated or estimated.
The forward-looking information contained herein is provided as at the date of the date of this press release, based upon the opinions and estimates of management and information available to management as at the date of this press release. The Company does not undertake and specifically disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable law. Readers are cautioned not to place undue reliance on forward-looking information contained in this press release.