Quinsam Announces New Investments and Positive Investment Performance
March 03 2014 - 7:21AM
Marketwired Canada
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION BY ANY UNITED
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Quinsam Capital Corporation (CSE:QCA)(CNSX:QCA) ("Quinsam" or the "Company")
today announced the completion of several recent investments.
Quinsam participated in the recent new issue by TransGaming Inc.
("TransGaming"). Roger Dent said that "I have been an investor in TransGaming in
the past and I have followed the company's progress for many years. While I have
not always chosen to be a holder of TransGaming shares, the recent new issue was
in my opinion a particularly good time for Qunisam to make an investment."
We started to build a position in Cematrix Corporation ("Cematrix") during late
2013 when the stock seemed to be suffering from typical small cap year-end
selling pressure. We recently completed the purchase of our position. Cematrix
is a manufacturer and supplier of technologically advanced cellular concrete
products with applications in a variety of markets, including oil and gas
construction and infrastructure construction. Cellular concrete provides a cost
and labour saving solution for various construction applications. Applications
for cellular concrete include tunnel grouting; bridge abutment and retaining
wall backfill; insulation of shallow utilities, roads and runways; insulation
and/or structural foundations for tank bases and facilities; and as a floating
base over weak and unstable or seismic prone soils, for roads and other types of
infrastructure.
We added a stake in In-Touch Survey Systems Ltd. ("In-Touch"). In-Touch develops
managed mobile software technology and services for clients that need mobile,
real-time information about customer leads, customer feedback, operational
compliance, employee feedback and new product analysis. In-Touch has developed
comprehensive software platforms including In-Touch Apps, EventMatrix and
Unified Insights that provide for the rapid development of data collection
programs including mystery shopping programs, mobile forms creations and
real-time online reporting.
The Company bought a small position in Atico Mining Corporation ("Atico"). While
we are not focused on the resource sector, we saw an opportunity in Atico to
obtain an unrecognized new producer just as it was starting to get some market
attention. While we have only had the position a few weeks, we are already up
about 20% on this purchase.
Performance Update
Quinsam would also like to take this opportunity to update investors on the
Company's recent investment performance.
As at the end of January 2014, the unaudited total value of the Quinsam's cash
and equity investments was approximately $913,000. During the month of February,
the value of these investments grew to approximately $982,000.
Roger Dent stated, "We are pleased with our overall investment performance to
date. In February, important contributors to performance included Atico,
Cematrix and Enterprise Group, Inc. The small cap hangover from 2008 finally
seems to be abating and there appears to be growing overall appetite for small
cap investments. At the same time, we continue to find many companies which we
believe are undervalued in the market."
Update on Private Placement
Quinsam recently announced that it will proceed with a best efforts non-brokered
private placement financing of up to 50 million common shares of Quinsam at a
price of $0.10 per share for gross proceeds of up to $5,000,000 ("the
Offering"). The proceeds of the Offering will be used for investment activities
and working capital purposes.
In connection with this placement, Quinsam may pay an 8% cash finder's fee to
certain eligible arm's length finders. The Offering is subject to certain
conditions, including, but not limited to, the receipt of all necessary
approvals, including the approval of the Canadian Securities Exchange ("CSE").
There can be no assurance that the private placement will be completed as
proposed.
The CEO of Quinsam, Roger Dent, has indicated his intention to participate as a
buyer in the Offering.
The company expects to close funds in the private placement in about 10 days.
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. Qunisam 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:
John Lewis, Business Development
(416) 523-7086
john@quinsamcapital.com
Eric Szustak, President
(905) 330-7948
eric@quinsamcapital.com
Roger Dent, CEO
(647) 993 5475
roger@quinsamcapital.com
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