Quinsam Reports Q1/2025 Results

Rhea-AI Summary

Quinsam Capital Corporation reported Q1/2025 financial results with net income of $0.2 million ($0.00 per share), down from $0.5 million in Q1/2024. The company's net assets stood at $0.10 per share, with liquid investments totaling approximately $0.05 per share. CEO Roger Dent noted modest movements in investment values, highlighting Blumetric's positive performance and the exit from CLS Holdings. Several private portfolio companies are approaching liquidity events, including Reeflex Coil Solutions, Peninsula, Exiteam, Theracann, and Electro Metals. The company made a new investment in Pelican AI and continues its issuer bid program, having repurchased no shares in Q1/2025 under the current bid for up to 4.6 million shares. Since 2018, Quinsam has repurchased and cancelled over 20 million shares.

Positive

• Net income of $0.2 million in Q1/2025
• Positive performance of Blumetric investment
• Multiple private portfolio companies approaching liquidity events
• Strong share buyback history with over 20 million shares repurchased since 2018
• Net assets of $0.10 per share, trading at significant discount to NAV

Negative

• Decline in net income from $0.5M in Q1/2024 to $0.2M in Q1/2025
• Shares trading at very steep discount to NAV
• No shares repurchased under current issuer bid in Q1/2025
• Company noting difficulties in finding suitable value-creating transactions

Toronto, Ontario--(Newsfile Corp. - May 22, 2025) - Quinsam Capital Corporation (CSE: QCA) ("Quinsam" or the "Company") is announcing its Q1/2025 results, with net income of $0.2 million ($0.00 per share basic, $0.00 fully diluted) versus net income of $0.5 million ($0.00 per share basic, $0.00 fully diluted) in Q1/2024. Investors can access the Company's full financial statements on sedarplus.ca.

"On the whole the movements in the values of our investments in Q1/2025 were relatively modest. The share price of Blumetric increased nicely from year-end and has continued to perform well in Q2 to date. We note that we exited our final US cannabis-related investment (some convertible debentures in CLS Holdings)," said Roger Dent, CEO.

In Quinsam's private securities portfolio, a number of liquidity events are pending. Reeflex Coil Solutions has closed its RTO with Bigstack Opportunities I and should trade in the coming days. Peninsula (the US single family rental business) is making efforts to list in the coming months. Exiteam (operating as VVT Medical) is in the final stages of completing its RTO and expects to trade this quarter. Theracann, which we fully wrote off some years ago, is now nearing a listing as Beyond Farming through a merger with Sprout AI on the CSE. Electro Metals has announced its intent to list through a merger with BWR Exploration.

"At March 31, 2025, we had net assets of approximately $0.10 per share outstanding," said Roger Dent, CEO. "Our shares continue to trade at a very steep discount from NAV. We also note that the total of our more liquid investments (including cash, public equities, and derivatives on public equities) is approximately $0.05 per share."

Quinsam made a new investment in Pelican AI in Q1, which is expected to list in the near term.

The search for a value creating transaction continues. We anticipate that it may take some time to find a suitable, value creating transaction. There have been relatively few companies undertaking new listings and our plan is to patiently wait for a high quality transaction. Further announcements will be made on the status of such steps which are subject to all applicable shareholder and regulatory approvals.

Issuer Bid

In Q1/2025, the Company acquired no shares pursuant to its issuer bid to purchase up to 4,600,000 of its common shares that commenced on September 6, 2024 and will terminate on September 5, 2025, or on an earlier date in the event that the number of common shares sought in the bid has been repurchased. Total purchases pursuant to this bid are 2,955,000 shares.

Quinsam has repurchased and cancelled over 20 million shares since 2018 pursuant to its issuer bids.

Investor Call

An investor call will be held at 10:00 a.m. Eastern time on Friday, May 23, 2025 by Zoom:

Join Zoom Meeting
https://us02web.zoom.us/j/89989964410?pwd=KfMhkdIirX3my4UleNQVxLbgtBuBqk.1

About Quinsam Capital Corporation

Quinsam is a merchant bank with a focus on "small cap" investments which it believes are undervalued. We do not invest on behalf of third parties or offer investment advice.

Generally, Quinsam does not believe that individual investments are material events. Quinsam may choose to announce certain investments once the company has finished buying its position because we feel that this information helps investors understand our decision making process. Generally, Quinsam does not announce the sale of investments.

For further information contact:

Roger Dent, CEO
(647) 993-5475
roger@quinsamcapital.com

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 making assumptions which include, among other things, that (i) Quinsam will have sufficient capital 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. Quinsam 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 risks and other factors that could cause actual results to differ materially from those expressed in forward-looking information 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 our investments in certain industries and sectors, reliance on key personnel, risks affecting investments, management of the growth of the Company, and exchange rate fluctuations and, in the case of the valuation creation strategies, the ability to complete divestitures of illiquid assets on terms which are economic or at all, to identify beneficial business opportunities, to secure or act on the identified business opportunities on terms which are economic or at all, and obtain all necessary shareholder and regulatory approvals. Readers are cautioned that the foregoing list of risks and factors is not exhaustive. Although Quinsam has attempted to identify factors that could cause actual events or results to differ materially from those described in forward-looking information, there may be factors that cause events or results to differ from those intended, anticipated or estimated.

The forward-looking information contained herein is provided as at this date, based upon the opinions and estimates of management and information available to management as at this date. Quinsam 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 herein.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION BY ANY UNITED STATES NEWS DISTRIBUTION SERVICE

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253004

FAQ

What were Quinsam Capital's (QCAAF) Q1 2025 earnings?

Quinsam Capital reported net income of $0.2 million ($0.00 per share) in Q1/2025, compared to $0.5 million in Q1/2024.

What is Quinsam Capital's (QCAAF) current net asset value per share?

As of March 31, 2025, Quinsam Capital's net assets were approximately $0.10 per share, with liquid investments (including cash, public equities, and derivatives) worth about $0.05 per share.

How many shares has Quinsam Capital (QCAAF) repurchased through its buyback programs?

Quinsam has repurchased and cancelled over 20 million shares since 2018 through its issuer bids, though no shares were repurchased in Q1/2025 under the current 4.6 million share buyback program.

What upcoming liquidity events does Quinsam Capital (QCAAF) have in its portfolio?

Quinsam has several pending liquidity events including Reeflex Coil Solutions' RTO with Bigstack, Peninsula's planned listing, Exiteam's RTO, Theracann's listing as Beyond Farming, and Electro Metals' merger with BWR Exploration.