Quinsam Issues Q1 Financial Result Report

Quinsam Capital Corporation (CSE:QCA) reported its financial results for the first quarter of 2018.

As quoted in the press release:

“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 [percent] 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 [CEO of Quinsam].

Click here to read the full press release.

Source: globenewswire.com