TORONTO, Aug. 29, 2017 (GLOBE NEWSWIRE) -- Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") today released unaudited financial results for the quarter ended June 30, 2017 and updated investors on the current outlook.
Q2/2017 Results
Quinsam reported a net loss of $276,910 in Q2/2017 ($0.01 per share) versus a profit of $130,739 in Q2/2016 ($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 loss in the quarter, which was disappointing,” said Roger Dent, CEO of Quinsam. “Our results do fluctuate from quarter to quarter. The largest contributors to the loss were our holdings in Deveron and Quadron. The quotes on these stocks declined on no particular news. We are of the opinion that these stocks will recover.”
As previously announced, Quinsam’s quarterly dividend was paid on August 21, 2017.
Quinsam’s financial results and MD&A have been posted on sedar.com.
Outlook
While the company reported a loss in Q2, the outlook for Q3 is favourable as of the date of this release. One of the company’s private cannabis investments, DelShen Therapeutics, completed a new financing at a material premium to our cost. A second private investment, PMML Corp., expects to close a new financing at a material premium to our cost in Q3. We may also see new financings or listings in Q3 by two of our recent private cannabis investments, I-5 Cannabis Holdings Limited and Lineage Grow Co. Ltd.(formerly named GroBright).
Quinsam recently completed an investment in a Canadian cannabis licence applicant, Canada House Wellness Group (“CHV”). “We now have five investments in the cannabis space as we continue to shift our portfolio to our new focus area. We negotiated the structure of the CHV investment with the company directly,” said Roger Dent. The investment consists of an 8% debenture convertible at $0.15 per CHV share plus full warrant coverage at $0.15. In addition Quinsam obtained a loan processing fee paid in the form of free CHV common shares plus it obtained the first 18 months of interest paid in shares in advance.
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 of the date of the date of this press release, based upon the opinions and estimates of management and information available to management as of 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.