Quinsam Capital Corporation

Quinsam Capital Corporation

November 04, 2014 09:33 ET

Quinsam Reports Q3 Earnings of $0.03 per Share and Provides Monthly Update for October 2014

TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) -


Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") today announced results for the third quarter ending September 30, 2014.

In the third quarter of 2014, Quinsam earned $0.03 per share versus $0.00 in the preceding year. Revenue increased from nil to $690,950. Roger Dent said "We are very pleased to have registered very robust earnings of $0.03 of EPS in the third quarter despite volatile market conditions." Important drivers of performance in Q3 were strong performance by investments in EnerDynamic Hybrid Technologies Corp. and Nuvo Research Inc.

"Operating expenses came in as anticipated at only $19,209, which includes $6,194 in non-cash costs related to stock-based compensation. We are working diligently to manage our expenses tightly for the benefit of shareholders."

Subsequent to quarter end, Quinsam announced its first dividend in the amount of $0.001 per share, payable on November 7, 2014.

Full quarterly results are available on SEDAR.

October Update

Quinsam completed the purchase of two investments of particular note in October: Solarvest BioEnergy Inc. ("Solarvest") and Commercial Royalty Capital Corp. ("Commercial Royalty")

We invested as part of a small group to provide commercialization capital to Solarvest. Solarvest has developed an algae-based method for the production of vegan, organic Omega-3 fatty acids. "We see this as a very interesting product with large revenue potential" said Roger Dent. Subsequent to making its investment, Quinsam was engaged as a financial advisor to Solarvest. This was the first of what Quinsy hopes will be several financial advisory contracts, which will help reduce Quinsam's operating costs even further.

Commercial Royalty is a new private company that intends to enter the royalty finance business. Royalty companies have recently met with good success on Canadian stock markets. We were able to acquire a position in the company's seed financing round at what we feel was a very attractive valuation. We also like the fact that we co-invested with a number of other institutional investors who can help contribute to the success of Commercial Royalty.

Performance Update

The Company closed October with a total portfolio of $2.4 million. As at the end of the preceding month, the unaudited total value of the Quinsam's cash and equity investments was approximately $2.6 million. "October, like September, was a very difficult market for Canadian small cap stocks. The general negative market tone was exacerbated, we think, by signs of year-end tax-loss selling" said Roger Dent. "While tax loss selling at this time of the year is a recurring factor, it can often be followed by a strong rebound in companies shares in late December and the early part of the new year."

An important component of our business strategy is the accumulation of purchase warrants at little or no cost. Quinsam now holds approximately 2.1 million warrants with an aggregate basic exercise value of approximately $1.1 million. 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. We value unlisted warrants at intrinsic value, which we see as being a conservative approach.

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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