Potse
2 years ago
QGSI...position status.....
Regarding the private message I received asking about my current thoughts on QGSI.....
This could end up being a very bad investment decision on my part, but I sold my position in QGSI. I was not comfortable with this proposed merger with CoinAnalyst, and I was growing increasingly uncomfortable about the lack of transparency on a couple of major press releases (corporate developments). Neither QGSI nor CoinAnalyst would respond to emails, so at this point I am just more comfortable moving my money into other opportunities.
Regarding the CoinAnalyst merger:
1) It looks like the burn rate of the combined company will be fairly high.
2) The exact details of how this will be implemented have not been disclosed yet, but it looks like this could turn out to be a bit of a messy or complicated situation. I have zero interest in owning a stock that trades on the Canadian exchange. As far as I am aware TD Ameritrade does not allow trading of foreign stocks, so I don't want to deal with the headaches of trying to get my position moved to a platform that allows me to trade it. Maybe QGSI will set up a "F" equivalent stock for United States shareholders, but I don't know how the mechanics of that would work out.
If anything about this merger were to make it more difficult (and/or more expensive) to trade my shares, I just don't think I would be interested in dealing with it.
Lack of transparency on corporate developments:
I am a generally patient investor and realize that things might not always materialize exactly how the company expects. But I do have some limits on what I find acceptable or not. The company issued two press releases in the last year or so disclosing very major transactions (a $1M investment from a third party -- 8/25/2021, and the CEO acquiring 90M shares -- 7/6/2022). Subsequent quarterly filings from QGSI do not appear to show any evidence these transactions actually occurred. The first press release was a red flag for me, but I was willing to give the company some leeway on it. This second press release was the final straw for me. The lack of transparency on these two items does not sit well with me.
Part of me wonders if instead of the CEO actually acquiring those 90M shares, maybe the sisters who owned those shares are just going to return those shares to treasury and the company will cancel them. If the share numbers and percentages disclosed in the merger press release are accurate, the only way this merger can be completed is if QGSI cancels around 90M shares. Otherwise the percentages (QGSI = 97%, CoinAnalyst = 3%) simply do not work.
No matter what the situation is, QGSI needs to provide better transparency on issues where filings seem to directly contradict information the company has issued in press releases.
02opida
2 years ago
oronto, Ontario and New York, New York--(Newsfile Corp. - February 8, 2022) - QuantGate Systems Inc. (OTCQB: QGSI) (the "QuantGate" or "Company"), an Artificial Intelligence ("AI"), Machine Learning ("ML") SaaS-based Fintech solutions provider extends Pilot to all TradeStation users. Pilot now supports and integrates with two of the top eleven brokerage trading platforms: (i) Interactive Brokers and (ii) TradeStation.
Potse
3 years ago
Reply to private message regarding position status.....
I did not get a chance to read through the Q1 report until Friday afternoon, and sent the company an email late Friday afternoon expressing my concern that the report provides no information about the $1 million financing that was completed during the quarter. I was planning to purchase one final block for trading purposes after the price broke under the 13-cent level, but decided to wait until the company provides an explanation/clarification on this matter. I still have not received any response from the company at the time I am writing this.
Regarding the private message I received inquiring about my position status: I have not sold any of my position yet since I made the above post. I did not receive any response to my email. So, I really don't know if that financing was actually completed or abandoned.
The only thing I have seen/heard regarding financing and QGSI recently is the audio interview that new ceo Govin Misir did around the middle of December. According to Govin QGSI's capital raises have been done "internally", which suggests to me that the $1M was not completed because the press release clearly stated that the $1M financing was from an arms-length strategic investor......
"We've raised capital internally. It's funded by us. We have not entered the market very much for any capital."
https://wallstreetanalyzer.com/2021/12/16/quantgate-systems-inc-otcqb-qgsi/
The next quarterly report should be out in around 2 weeks or so. If there is no information/explanation in that report regarding that financing, my mood toward this investment probably will not be very good. Again, maybe I am jumping the gun here and there is some perfectly acceptable/logical explanation. But if that particular financing was never completed, I think the company had an obligation to let its investors know.
I am definitely planning to sell a significant percentage of my position during calendar 2022. But the idea of selling at current prices is not something I find particularly appealing. My guess is there will be far better opportunities to sell at some point this year.
Govin Misir has a very successful background, so I would like to give him an opportunity to show what he can do now that he is officially in management control of the company. He mentioned in the interview that he has been bringing in new operational people to the company (design, development, marketing). It sounds like he is also bringing in additional advisors and board members. At the time of the interview QGSI was priced around 8 cents. Govin described QGSI as being "underpriced".
Potse
3 years ago
My concern with the quarterly report......
Accumulated a few shares around the 16-17 cent area for another possible short-term trade back over the 20-cent level. The OTC market has somewhat cooled off recently, but I am anticipating we have not seen the last of some moves/spikes in the QGSI share price in the near-to-mid term. Quarterly report should be appearing sometime within the next week or so, and I wanted a few extra shares just in case anything interesting shows up in that report or if any important corporate development materializes shortly after.
I did not get a chance to read through the Q1 report until Friday afternoon, and sent the company an email late Friday afternoon expressing my concern that the report provides no information about the $1 million financing that was completed during the quarter. I was planning to purchase one final block for trading purposes after the price broke under the 13-cent level, but decided to wait until the company provides an explanation/clarification on this matter. I still have not received any response from the company at the time I am writing this.
Here are the key things that concern me......
1) The August 25 press release seems to definitively state that the financing was completed during the quarter (money was received and shares were issued). However, there is no information in the Q1 financials that indicate this occurred.......
QuantGate is also delighted to announce the completion of a non-brokered Private Placement financing (the "Financing") in the amount of USD $1 Million. Pursuant to the offering, the Company received Gross proceeds of USD $1 Million, via a Secondary Offering (the "Offering") by the issuance of 5 million shares at USD $.20 per share. The entire financing was subscribed by an arms-length, Strategic Investor.
2) I have considered the possibility that maybe I am just misinterpreting that paragraph, or maybe there is something in the terms/conditions of the financing that pushes actual delivery of money/shares to a date past the end of that quarter. However, at a minimum I would certainly think the "subsequent events" section of the quarterly report would mention this financing. It does not. It seems almost inconceivable to me that neither the financials nor the subsequent events section contained any kind of information about the $1 million financing.
3) During the quarter the shares outstanding only increased by a little over 100K (one of the note holders converted his loan at 25 cents). If the most recent verified share count (October 15) from the transfer agent is accurate, the shares outstanding has only increased by 1.12M since the end of the quarter. It is possible some or all of that increase could be from note holders converting at 25 cents. I would think by now (almost 2 months since the completion of the financing) the 5 million shares from that financing should have showed up in the most recent verified share counts on QGSI's OTC Markets profile.
There could be a simple/logical explanation for all of above, but until the company provides some confirmation/clarification on the status of that financing I probably will not entertain the thought of purchasing any more shares and may have to seriously rethink my commitment to this investment.
Potse
3 years ago
Added a few more shares for trading again......
With the financing news last week, I am viewing pullbacks under that 20-cent price level as potentially attractive trade opportunities.
Accumulated a few shares around the 16-17 cent area for another possible short-term trade back over the 20-cent level. The OTC market has somewhat cooled off recently, but I am anticipating we have not seen the last of some moves/spikes in the QGSI share price in the near-to-mid term.
Quarterly report should be appearing sometime within the next week or so, and I wanted a few extra shares just in case anything interesting shows up in that report or if any important corporate development materializes shortly after. I think the appointment a few weeks ago of Govin Misir as the Chief Operations Officer is a pretty significant development. It should solidify the ability of QGSI to attract financing when needed, and probably dramatically increases the possibility of operational success for the company.
I like the fact that Govin is sufficiently intrigued/interested in what is going on with this company that he was willing to take an executive position and get involved in the day-to-day operations, rather than just be an advisor or director for the company.