Quinsam Capital Corporation

Quinsam Capital Corporation

July 07, 2014 09:51 ET

Quinsam Monthly Update for June 2014 and AGM Results

TORONTO, ONTARIO--(Marketwired - July 7, 2014) -


Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") today provided an update on activities for June 2014 and announced results from the recent annual meeting.

Quinsam invested in three companies in June 2014.

We purchased shares in Terravest Capital Inc. Terravest is high-yielding, EBITDA-oriented merchant bank with strong exposure to the western Canadian economy. We think that the company has room for both multiple expansion and EBITDA growth.

We bought a position in Tuscany Energy Ltd. We see Tuscany as an attractively-valued junior oil producer. The stock was up over 20% from our cost as of the end of the month.

We took a small position in Moly Mines Limited after it announced that it would be delisting from the TSX. Many investors would not consider investing in this company just as it was about to be delisted; however, we saw it as a very attractive opportunity for a patient investor. Moly Mines is now in essence a shell company with an extremely large cash balance. No doubt the delisting announcement caused many investors to sell and as result the shares traded down to approximately 1/3 of the company's cash value. Our expectation is that Moly Mines will acquire assets and relist in the fullness of time. We believe that when this happens our decision to buy at 1/3 of cash will be rewarded.

In addition to these purchases, Quinsam was presented with an interesting opportunity to acquire in-the-money warrants of Atico Mining Corporation. We were already investors in Atico and we saw the opportunity to buy in-the-money warrants at approximately intrinsic value as being very attractive. We sold our shares in Atico and more than tripled our upside exposure through the purchase of the warrants. At the same time, we took nearly half of our total investment in Atico off the table.

Performance Update

Quinsam would also like to take this opportunity to update investors on the Company's recent performance.

The Company closed the month at the highest portfolio value recorded since the Company's new business strategy was implemented in November 2013. As at the end of June 2014, the unaudited total value of the Quinsam's cash and equity investments was approximately $1.9 million, compared with a value of $1.8 million at the end of May 2014.

Another leg in our business strategy is the accumulation of purchase warrants. We are pleased to report Quinsam now holds approximately 1.8 million warrants with an aggregate basic exercise value of over $900,000. The exercise value is not an indication of the economic value of the warrants; we provide it to investors so they can understand the amount of upside leverage that we are accumulating through our warrant portfolio. As at the end of June, the carrying value on our books of our warrant portfolio was $49,000, which was wholly attributable to the recently purchased Atico warrants.

Annual Meeting Results

Quinsam held its annual meeting on June 26, 2014. A total of 12,011,630 common shares were represented at the meeting which constituted 50.52% of the outstanding shares. At the meeting, all resolutions were passed unanimously as shareholders voted 100% in favour of all resolutions with none against or withheld.

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 investors in Quinsam 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.

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