Quinsam Corporate Update on Liquidity Events
TORONTO, March 05, 2019 (GLOBE NEWSWIRE) -- Quinsam Capital Corporation (CSE: QCA) ("Quinsam" or the "Company") is pleased to provide an update to investors.
City View Green To Commence Trading
Quinsam provided an early stage second mortgage financing to City View Green Holdings Inc. (CSE-CVGR) and Quinsam continues to hold the mortgage on the Brantford-based property. As part of its investment, Quinsam received a 30% equity stake in the company, which has been diluted down as a result of subsequent financings. City View Green is expected to commence trading on March 5. At this time Quinsam holds approximately 26 million shares in the company. Quinsam had previously reported that it would hold about 33 million shares in CVGR. However, this figure was reduced following a pre-listing share consolidation. Our percentage holding in the company was not impacted.
CVGR has made great progress and is now pursuing an oil extraction strategy. It also holds a 19.99% stake in Budd Hutt Inc., a private company pursuing cannabis retail licences in Alberta. We expect the company to announce enhancements to its management team in the near term.
CB2 Insights To Commence Trading
CB2 Insights Inc. is the new name of MVC Technologies Inc. (dba Sail Cannabis). Trading is expected to begin on Wednesday under the symbol CBII. Quinsam invested $440,000 at $0.44 per unit in the company last year.
CB2 Insights works to help mainstream cannabis grow into traditional healthcare through objective, real-world evidence driven from its wholly-owned clinical division. With more than 300,000 patient interactions to-date, the company is able to apply standard data collection protocols and track the efficacy of cannabis treatments in a way currently not available within the cannabis industry today. CB2 owns and operates the largest and longest-running, multi-jurisdictional medical cannabis evaluation and education centres serving 12 states across the US. CB2 has an aggressive medical cannabis clinic consolidation strategy and anticipates further announcements in this regard in the coming quarters.
Cannabis One Commenced Trading Last Week
Quinsam invested $341,550 in Cannabis One Holdings Inc. last year at an equivalent price of $0.50 per unit (share and a half warrant at $0.75). Cannabis One shares recently traded at $2.50.
Cannabis One is a Colorado based corporation that provides various support services and infrastructure development to licensed producers of cannabis in the States of Colorado, Nevada and Washington. Cannabis One has licensing agreements and contractual partnerships with unrelated licensed cannabis producing entities to provide a variety of services including product packaging, equipment leasing, and site personnel and management resources. It also owns certain intellectual property, including the trademarks, domain names and/or licensing rights for various cannabis related brands within the State of Colorado, including the trademark, trade name and domain names for the cannabis production brand “CannabisTM”, for the retail locations known as “The JointTM” and for the innovative vape style cannabis delivery system known as “INDVRTM”.
Osoyoos Cannabis Commenced Trading
Osoyoos Cannabis Inc., in which we invested in $500,000 in convertible debentures, commenced trading in February. Our debentures convert at $0.15 and we also had warrant coverage. Osoyoos is pursuing an oil extraction and outdoor grow strategy and is currently in the licensing process. The shares are currently trading at approximately $0.25, which is lower than the $0.45 price at which the company last raised funds (and where we most recently pegged the value of our investment). However, we remain pleased with out investment in Osoyoos and at this time plan on retaining our position.
Abacus Health Products Commenced Trading
Abacus Health Products, in which we invested $300,000 at $3.75 per share, has a growing line of FDA-approved CBD products on the market in the United States. The company had a very successful trading debut about a month ago and now trades in the $11 area.
“Apart from these developments, as previously announced we saw a very positive liquidity event in Q1/2019 by Westleaf Inc.” said Roger Dent, CEO of Quinsam. “This stock continues to trade very well. We have also seen very nice moves in our holdings in Halo Labs Inc. and C21 Investments Inc. Halo has released very positive January and February sales data. As expected, C21 has recovered from the severe pressure that was brought about by the convertible debenture unit offering in which we participated. Not surprisingly, we have seen a decline in Cannamerica Brands Corp. following the expiry of the hold on its new issue shares. Overall, we remain pleased with progress in Q1/2019 to date.”
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 Quinsam’s investors understand its investment decision making process. Generally, Quinsam does not announce the sale of investments.
For further information please contact:
Roger Dent, CEO
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: cannabis companies Quinsam has invested in obtaining and maintaining regulatory approvals including acquiring and renewing U.S. state, local or other licenses, and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization; market and general economic conditions of the cannabis sector or otherwise, 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 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.