Quinsam Capital Corporation

Quinsam Capital Corporation

April 26, 2016 07:26 ET

Quinsam Reports 2015 Annual Financial Results, Quarterly Dividend and Comments on New Developments

TORONTO, ONTARIO--(Marketwired - April 26, 2016) -


Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") released audited annual and Q4/2015 financial results for the period ended December 31, 2015, declared a quarterly dividend and provided investors with an update on recent developments.

2015 Financial Results

"Market conditions were very difficult in late 2015" said Roger Dent, CEO of Quinsam. "Nevertheless, we finished the year with a loss of $250,000 after the deduction of non-cash stock based compensation costs of $67,000. In comparison, the TSX-V Composite Index fell over 24% in 2015. In the fourth quarter, Quinsam had a loss of $168,000. The Company ended the year with assets of $2.4 million after dividends of $105,000.

Quinsam's 2015 financial results and MD&A are available on sedar.com.

Q1/2016 Dividend

The Board of Directors of Quinsam has approved a seventh consecutive quarterly dividend of $0.001 per share ($0.004 per share per year). This represents an indicated dividend yield of 4.4% based on the most recent trading price of $0.09 per share. The dividend will be paid on May 19, 2016 to shareholders of record on May 2, 2016. This dividend will not be designated as an "eligible dividend" for Canadian income tax purposes. Future quarterly dividends are subject to Board approval.

Update on Recent Events

While Q1/2016 results have not been finalized, Quinsam believes that its net income or loss for Q1/2016 will not be significant.

The Company announced an investment in Resideo Properties late in 2015. Resideo did not go ahead with its going-public event and the Company's investment was returned in full in Q1/2016.

Quinsam invested in a private company that is engaged in commercial unmanned aerial systems (drone) flying for the 2016 agricultural season in Ontario. The private company is going public through a merger with Deveron Resources Ltd. We expect the going-public transaction to be completed in late April or early May.

Quinsam made an investment in an advanced Ontario based gold explorer, Augustine Ventures Inc. We purchased units at $0.055 including a full warrant exercisable at $0.08. Augustine recently traded at $0.08. Augustine is in the process of consolidating ownership of its land holdings through a proposed merger with Red Pine Exploration Inc. We think that the consolidation of ownership will have a beneficial impact on the investment community's perception of the company.

The Company announced a normal course issuer bid in Q4/2015. In the first quarter of 2016, the company bought and subsequently cancelled 30,000 shares. The average acquisition price was $0.08 per share.

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 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 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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