Quinsam Capital Corporation

Quinsam Capital Corporation

April 08, 2014 07:46 ET

Quinsam Monthly Update for March 2014

TORONTO, ONTARIO--(Marketwired - April 8, 2014) -


Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") today announced the completion of three recent investments.

Quinsam participated in the recent new issue at $2.25/unit by Nuvo Research Inc. ("NRI"). NRI is a life science company that has both products on the market generating significant revenue and cash flow and also an important new product in advanced clinical trials. We think that each of these elements could easily justify the price we paid for our investment. NRI's marketed products include Pennsaid (a topical treatment for the signs and symptoms of osteoarthritis of the knee), Pennsaid 2% (a topical treatment for the pain of osteoarthritis of the knee), Pliaglis (a topical local anesthetic) and the heated lidocaine/tetracaine patch (HLT Patch).

We also purchased shares in Kane Biotech Inc. ("KNE"). Kane is developing a suite of animal health products. The products are generally based on antibiofilm and antimicrobial technology and partnership discussions are in progress. KNE is also exploring technology applications outside of the veterinary market.

Additionally, we purchased shares in TIO Networks Corp. (TSX VENTURE:TNC). Tio Networks is a Canadian based payment processor with operations in North America and the Caribbean. TNC recently closed the acquisition of Globex Financial Services and reported earnings that included one month of Globex revenue indicating much improved profitability and renewed organic growth.

Performance Update

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

As at the end of March 2014, the unaudited total value of the Quinsam's cash and equity investments was approximately $1.8 million, compared with a value of $982,000 at the end of February 2014. The growth in the portfolio was due to the completion of the previously announced private placement. Small cap markets suffered some softness in the last part of March and overall investment performance in March was modestly negative after a strong February. The losses were more than offset by gains in the first few days of April.

Roger Dent stated, "We continue to be pleased with our overall investment performance to date. While March was not a great month overall for small caps, we attribute this to a normal correction after several strong months plus a relative absence of news due to the annual earnings reporting cycle. We continue to see the outlook as being very positive."

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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