Quinsam Looks Forward To Numerous Q4/2018 Liquidity Events

Toronto, Ontario, CANADA


TORONTO, Oct. 02, 2018 (GLOBE NEWSWIRE) -- Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") is pleased to announce that it expects a large number of liquidity events by its investee companies in the coming months.

“Quinsam has invested in a large number of pre-public companies over the last year” said Roger Dent, CEO of Quinsam. “Many of these investments were in anticipation of going-public transactions. Following the usual slow period for liquidity events in the summer of 2018, Quinsam now anticipates a very active period for liquidity events as we head into the end of 2018. In all cases, we currently expect the liquidity events to have a positive impact on our NAV. We are at present very optimistic about the prospects for our Q4 results.”

The timing of these liquidity events is not in Quinsam’s control and they are subject to regulatory approvals, which may not be forthcoming. However, based on what has been announced, liquidity events anticipated in the near term include the following:

Acreage Holdings: Quinsam invested $992,000 in Acreage at a pre-money value of approximately US$500 million. Acreage has announced an RTO on the CSE with an anticipated listing in November. The RTO is with Applied Inventions Management Corp. “We think that Acreage has the potential to be regarded as the premier US cannabis company” said Roger Dent. “Given the market response to the current private financing by Curaleaf Inc., we would not be surprised to see Acreage trade at a very large premium to our cost.” 

FLRish Inc (dba Harborside): Quinsam invested US$1.25 million in this company and it has announced an RTO with Lineage Grow Company Ltd., another Quinsam investee. We anticipate a well-received listing in December.

Halo Labs Inc. has received conditional listing approval from the CSE for its merger with Apogee Opportunities Inc. We invested $500,000 in Halo Labs Inc. and we understand that listing is imminent.

Next Green Wave Holdings Inc., in which we invested $525,000 at $0.35 a share, has received conditional listing approval. We anticipate trading in October 2018.

IM Cannabis Corp., in which we invested $400,000, has announced an RTO with Navasota Resources Inc. It expects to list on the CSE in November.

Irri-Al-Tal Ltd. has announced an RTO with Sagittarius Capital Corp. Quinsam invested $350,000 in the company and we anticipate trading in October.

Xtraction Services, Inc. has announced an RTO with Caracara Silver Inc. Quinsam invested US$400,000 in Xtraction in convertible debentures.

Xanthic Biopharma Inc. is merging with Green Growth Brands, a major US cannabis growth initiative. Quinsam holds in excess of 2 million shares of Xanthic. The merger was announced in July and we anticipate completion of the deal prior to the end of the year.

Segra International Corp. intends to list its shares on the CSE prior to Oct. 31, 2018. Quinsam invested $100,000 at $0.25 per share and $300,000 at $0.75 per unit.

MVC Technologies Inc. (dba Sail Cannabis), in which Quinsam invested $440,000, has announced its intention to go public though an RTO with a numbered company. We anticipate trading later this year.

CityView Green has announced a going-public merger with Icon Exploration Inc. Quinsam acquired 3 million shares of CityView Green as part of a mortgage loan advance. We anticipate a listing before year end. 

Osoyoos Cannabis Inc. has announced an RTO with LKP Solutions Inc. Quinsam invested $500,000 in Osoyoos and we anticipate trading later this year.

CannAmerica Brands Corp., in which we invested $495,000, has filed a preliminary prospectus for an IPO.

Grown Rogue Unlimited, LLC, in which Quinsam invested $440,000, has announced an RTO with Novicius Corp. A CSE listing is expected.

Biome Grow Inc. (formerly Cultivator Catalyst) has announced that it has received conditional listing approval from the CSE for its RTO transaction with Orca Touchscreen Technologies Ltd. Quinsam invested $300,000 in this company.

ALQ Gold Corporation, in which Quinsam invested $405,000, has completed a filing statement for a public listing which is expected later this year.

In addition to the potential liquidity events listed above, there are other liquidity events which are possible but for which no formal announcements have been made to date.

Q3 Results

Quinsam expects to report Q3 results in mid-November. While Quinsam is only beginning the process of compiling its earnings report, Quinsam expects to deliver another quarter of solid earnings.

About Quinsam Capital Corporation

Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. 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.

For further information please contact:

Roger Dent, CEO
(647) 993-5475

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: cannabis companies Quinsam has invested in obtaining and maintaining regulatory approvals including acquiring and renewing U.S. state, local or other licenses, and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization; market and general economic conditions of the cannabis sector or otherwise, 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 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.