Toronto, Ontario--(Newsfile Corp. - April 29, 2025) - Quinsam Capital Corporation (CSE: QCA) ("Quinsam" or the "Company") is announcing its Q4/2024 results, with a net loss of $4.3 million ($0.04 per share basic, $0.04 fully diluted) versus a net loss of $1.6 million ($0.02 per share basic, $0.02 fully diluted) in Q4/2023. Investors can access the Company's full financial statements on sedarplus.ca.
"The Q4 net income was largely attributable to a decline in the California Nanotechnologies share price and due to two provisions made in our private securities portfolio. While we made these accounting provisions, the underlying situation in Q4 was similar to that in Q3. The largest provision relates to our mortgage in Guelph (Med. Compassion), where we elected to take the carrying value to $nil. The actual amount owing to us here, including accrued interest and fees, is approximately $2.5 million. We continue to work with the borrower in this situation as he restructures his portfolio. Most recently, we were paid a cash fee of $25,000 in Q1/2025 and we believe we will make further realizations on this asset. However, due to the uncertainty about the timing and amounts we may receive, we elected at this time to take the carrying value to $nil. In the case of A-Synaptic, the company raised new funds in late 2024. While the nominal price was the same as our carrying value, the new financing included a warrant sweetener and we needed to back this warrant value out of our carrying value at a substantial Black-Scholes value. We understand that A-Synaptic is in the final stages of gaining approval for the trial its potential game-changing childhood epilepsy drug, which is the trigger for A-Synaptic to begin its effort to go public in the United States at a large premium to our carrying value."
Elsewhere in Quinsam's private securities portfolio, progress is being made. Peninsula (the US single family rental business) has raised funds at a higher value and is making efforts to list in 2025. Exiteam (operating as VVT Medical) is in the final stages of completing its RTO and expects to trade this quarter. Theracann, which we fully wrote off some years ago, is now nearing a listing as Beyond Farming through a merger with Sprout AI on the CSE. Electro Metals has announced its intent to list through a merger with BWR Exploration.
"At December 31, 2024, we had net assets of approximately $0.10 per share outstanding" said Roger Dent, CEO. "Our shares continue to trade at a very steep discount from NAV. We also note that the total of our more liquid investments (including cash, public equities, and derivatives on public equities) is approximately $0.05 per share."
Quinsam invested $320,000 in late 2024 in an offering by Blu-Metric at $0.80 per share and $120,000 in a unit offering by Silver Bullet Mines at $0.12. Quinsam also invested $187,500 in Reeflex Coil Solutions, which is a manufacturer of oil field service and fire prevention equipment and which is expected to list in the coming weeks through a merger with Bigstack Opportunities I.
The search for a value creating transaction continues. We anticipate that it may take some time to find a suitable, value creating transaction. There have been relatively few companies undertaking new listings and our plan is to patiently wait for a high quality transaction. Further announcements will be made on the status of such steps which are subject to all applicable shareholder and regulatory approvals.
Issuer Bid
In Q4/2024, the Company acquired 1,496,000 shares pursuant to its issuer bid to purchase up to 4,600,000 of its common shares that commenced on September 6, 2024 and will terminate on September 5, 2025, or on an earlier date in the event that the number of common shares sought in the bid has been repurchased. Total purchases pursuant to this bid are 2,955,000 shares.
Quinsam has repurchased and cancelled over 20 million shares since 2018 pursuant to its issuer bids.
Investor Call
An investor call will be held at 10:00 a.m. Eastern time on Wednesday, April 30, 2025 by Zoom:
Quinsam is a merchant bank with a focus on "small cap" investments which it believes are undervalued. We do not invest on behalf of third parties or offer investment advice.
Generally, Quinsam does not believe that individual investments are material events. Quinsam may choose to announce certain investments once the company has finished buying its position because we feel that this information helps investors understand our 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 making assumptions which include, among other things, that (i) Quinsam will have sufficient capital 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. Quinsam 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 risks and other factors that could cause actual results to differ materially from those expressed in forward-looking information 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 our investments in certain industries and sectors, reliance on key personnel, risks affecting investments, management of the growth of the Company, and exchange rate fluctuations and, in the case of the valuation creation strategies, the ability to complete divestitures of illiquid assets on terms which are economic or at all, to identify beneficial business opportunities, to secure or act on the identified business opportunities on terms which are economic or at all, and obtain all necessary shareholder and regulatory approvals. Readers are cautioned that the foregoing list of risks and factors is not exhaustive. Although Quinsam has attempted to identify factors that could cause actual events or results to differ materially from those described in forward-looking information, there may be factors that cause events or results to differ from those intended, anticipated, or estimated.
The forward-looking information contained herein is provided as at this date, based upon the opinions, and estimates of management and information available to management as at this date. Quinsam 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 herein.
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