Quinsam Monthly Update for April 2014
May 05 2014 - 9:09AM
Marketwired Canada
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION BY ANY UNITED
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Quinsam Capital Corporation (CSE:QCA) ("Quinsam" or the "Company") today
announced an update on recent activities.
Quinsam invested in three companies in April, all of which have exciting upside
potential in the Company's opinion.
The Company was a major participant in the recent new issue by California
Nanotechnologies Corp. ("Cal Nano") (TSX VENTURE:CNO). Subsequent to our
investment, Roger Dent, CEO of Quinsam, joined the board of Cal Nano. Cal Nano
produces powders, billets, wire and precision forged components from nano,
near-nano, ultrafine and conventional advanced materials. The application of
nanotechnology to the production of metal alloys results in products with
enhanced or unusual performance characteristics. Roger Dent said that "Cal Nano
has been developing products and technologies over a number of years. Products
are now approaching the point where very meaningful commercial ramp up is
possible. While there are of course many risks and uncertainties when companies
are at this stage of development, we believed that the juxtaposition of Cal
Nano's significant opportunities, low valuation and modest cash requirements
created a compelling investment case for us."
Enerdynamic Hybrid Technologies Inc. ("Enerdynamic") is an Ontario-based company
with a number of interesting alternative-energy businesses. Quinsam finds
Enerdynamic's combination windmill/solar/battery product for powering remote
cell towers to be particularly interesting. Enerdynamic is expected to begin
trading in May as a result of an RTO with MCM Capital One Inc.
Quinsam participated in the new issue by Cynapsus Therapeutics Inc. ("Cynapsus")
(CTH). Cynapsus is in advanced development of a treatment for patients suffering
from Parkinson 's disease. As part of the new issue, Quinsam acquired some
attractive5-year share purchase warrants.
Growing Warrant Portfolio
As part of our investment strategy Quinsam invests in new issues in order to
build a warrant portfolio at no additional cost. Quinsam believes that this
strategy can lead to significant upside leverage in its portfolio if investments
perform well. Except in the unusual case of exchange-listed warrants, Quinsam's
policy is to value its warrants at intrinsic value. This conservatively results
in out-of-the-money warrants having no carrying value on our books.
Our warrant portfolio has grown to a significant size and now includes warrants
issued by five issuers: Cal Nano, Cynapsus, Nuvo Research Inc., Enerdynamic and
Transgaming Inc. Three of these warrant acquisitions closed in April 2014.
In total Quinsam now holds over 1.5 million warrants with an aggregate basic
exercise value of approximately $700,000. The exercise value is not an
indication of the economic value of the warrants; we provide it to investors
only so they can understand the amount of upside leverage that we are
accumulating through our warrant portfolio
Performance Update
Quinsam would also like to take this opportunity to update investors on the
Company's recent performance.
As at the end of April 2014, the unaudited total value of the Quinsam's cash and
equity investments was approximately $1.8 million, compared with a value of $1.8
million at the end of March 2014. As described above, four of our five tranches
of warrants are carried at nil in our April figure. The Nuvo Research Inc.
warrants are now "in the money" and have a carrying value.
Roger Dent stated, "We are pleased with our overall investment performance to
date. While April did not show notable performance one way or the other, we
continue to see the market outlook as being very positive for our investments."
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Quinsam Capital Corporation
John Lewis
Business Development
(416) 523-7086
john@quinsamcapital.com
Quinsam Capital Corporation
Eric Szustak
President
(905) 330-7948
eric@quinsamcapital.com
Quinsam Capital Corporation
Roger Dent
CEO
(647) 993 5475
roger@quinsamcapital.com
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