TORONTO, May 30, 2018 (GLOBE NEWSWIRE) -- Quinsam Capital Corporation (CSE:QCA) (Quinsam or the Company) is pleased to announce the strongest quarterly results in the Companys history. The company announced net income of $4.9 million ($0.05 per share) in Q1/2018 versus $nil ($0.00 per share) in Q1/2017, which represents an extremely strong return on the Companys assets.
Calculating our percentage return for the quarter remains difficult because we closed an equity financing during the period said Roger Dent, CEO of Quinsam. Our operating income of $4.9 million in the quarter was generated on total assets at the start of the quarter of $19.4 million. We raised a further $12.3 million in the quarter, although most of these funds remained in cash at the end of the quarter. So we feel that our return on invested assets was quite strong in the quarter. At quarter end, we had net assets of approximately $0.31 per share outstanding.
Net income of $4.9 million was after non-cash expenses of $0.1 million for tax and $0.3 million for stock-based compensation.
Q2 Outlook
Q2 continues to be on track for a positive result. Of particular note, the Company's $875,000 investment in Dosecann Inc. completed in January 2018 has triggered significant appreciation due to the acquisition of Dosecann Inc. by Cannabis Wheaton Income Corp. at a price which was over twice our effective cost. We have also seen gains on listings by Xanthic Biopharma Inc., Empower Clinics Inc. and Khiron Life Sciences Corp. One of our larger investments (in C21 Investments Inc.) is expected to be trading before the end of the quarter.
We have also announced a plan to sell our right to a 35% stake in Herbiculture Inc. to Lineage Grow Company Ltd. (Lineage) in exchange for 3.9 million shares of Lineage. As we carry this right at no cost, the entire proceeds would be accretive to our NAV on a pre-tax basis. This transaction has not closed but we expect it to do so before the end of Q2/2018 said Roger Dent.
While the cannabis sector has shown and likely will show significant volatility, we still see many extremely interesting investment opportunities said Roger Dent. We will continue to look for opportunities that are generally unavailable to the typical investor. We will also remain focused on maintaining a tight cost structure. By bringing a disciplined approach to this rather volatile sector, we have to date been able to deliver strong results for our investors.
About Quinsam Capital Corporation
Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. 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 Quinsams investors understand its investment decision making process. Generally, Quinsam does not announce the sale of investments.
For further information please contact:
Roger Dent, CEO
(647) 993-5475
roger@quinsamcapital.com |
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