Connect with us
European Gaming Congress 2024

Fintech

Quinsam Reports Q4/2019 Results and Declares Dividend

Published

on

Toronto, Ontario–(Newsfile Corp. – April 29, 2020) – Quinsam Capital Corporation (CSE: QCA) (“Quinsam” or the “Company”) wishes to announce its Q4/2019 results, with a net loss of $5.9 million ($0.05 per share basic, $0.05 fully diluted) versus a net loss of $3.2 million ($0.03 per share basic, $0.02 fully diluted) in Q4/2018. Investors can access the Company’s full financial statements on sedar.com.

“At December 31, 2019, we had net assets of approximately $0.29 per share outstanding,” said Roger Dent, CEO of Quinsam. “Even though our NAV declined in Q4 due to negative conditions in the cannabis space, our trading price is at an extremely large discount to our underlying asset value. The discount to reported NAV has never been larger than it has been in recent weeks.”

Quinsam notes that the cannabis sector generally had negative performance in Q4/2019. For example, the Horizon Marijuana Life Sciences Index ETF NAV fell by approximately 28% in the quarter bringing its total decline for the year to approximately 43%. In comparison, Quinsam’s NAV per share declined by approximately 15% in Q4/2019 (from approximately $0.34 to approximately $0.29) and approximately 21% for 2019 as a whole (from approximately $0.37 to approximately $0.29). In addition, Quinsam paid dividends of $0.005 per share over the course of 2019 so the Company’s NAV decline before dividends was better than these figures. Portfolio selection, as well as our focus on convertible debenture, debt and private company investments, helped to shelter Quinsam from some of the negative environment. NAV was also positively impacted by issuer bid share repurchases. “It goes without saying that losing money is never a good outcome. However, we take solace in the fact that our NAV performance after all expenses was well above levels generated by the ETF” said Roger Dent.

Included in the quarterly loss were approximately $1.3 million of provisions related to private company equity investments due to the negative cannabis index performance. Because of the negative index performance, Quinsam and its auditors believe that it is reasonable to adjust the carrying values of private company investments where there have been no recent transactions to provide definitive indications of value. We highlight this because we want our investors to understand that a large component of our reported decline in NAV is being generated by this valuation process.

We note that a number of our convertible debentures are now carried at below face value, even when we expect to ultimately recover our full investment. This occurs in some cases as a result of Black-Scholes adjustments to the carrying values of the conversion features inherent in our convertible debenture portfolio and in other cases because quoted prices are below face value.

Dividend

The Board of Directors of Quinsam has approved the Company’s 23rd consecutive quarterly dividend. The dividend is $0.00125 per share ($0.005 per share per year). The distribution will be paid on May 29, 2020 to shareholders of record on May 8, 2020. This dividend will be designated as an “eligible dividend” for Canadian income tax purposes. Future quarterly dividends will be subject to Board approval.

2020 Update

General market conditions have been negative and volatile in 2020. Overall, cannabis shares have been negatively impacted as well. However, we are seeing anecdotal evidence that the market is starting to recognize cannabis issuers that are well managed and reporting good performance. For example, in the last few weeks the shares of IM Cannabis Corp. have increased nearly 3x from their 52-week low on a number of positive news releases. Sixth Wave Innovations Inc. shares more than doubled to all-time highs on news in early April, at which point Quinsam chose to exit its investment.

Our strategy of investing to a material degree in convertible debentures is proving to be fortunate. The declines in value in our convertible debentures have been less severe than would have been the case had we invested in common shares. Also, we are beginning to see value enhancements through the announcement of conversion price adjustments. For example, on April 24 Sproutly Canada Inc. announced that it was reducing the conversion price on our convertible debentures from $0.75 to $0.105. This creates the realistic potential for us to exit this investment with a gain through conversion, which had seemed quite unlikely prior to this news. As a result, we were able to exit a small portion of our investment at a premium earlier this week. We note our Sproutly convertible debenture was carried at a little less than 90% of face value as at December 31, 2019.

Advertisement

Since year-end, Quinsam has sold investments on a net basis and at the present time our net cash balance is over $300,000.

Quinsam expects to report Q1/2020 results in mid to late May. We already know that the cannabis ETF declined in Q1/2020, so for accounting purposes we will likely adjust the values of many of our private cannabis investments in line with the index.

We have not been highly active on the new investment front in recent months. As we exit existing investments, in light of current cannabis market conditions, Quinsam may choose to look at investments outside the cannabis sector going forward.

Issuer Bid Update

Quinsam announced a normal course issuer bid to purchase up to 5,733,635 of its common shares (the “Bid”) in August 2019. The Bid commenced on August 28, 2019 and will terminate on August 27, 2020, or on an earlier date in the event that the number of common shares sought in the Bid has been repurchased. The Company reserves the right to terminate the Bid earlier if it feels that it is appropriate to do so.

In the quarter ending December 31, 2019, Quinsam repurchased and cancelled 1,500,000 shares pursuant to the Bid. The shares were purchased at a large discount to NAV and the repurchases had a positive impact on NAV per share for remaining shareholders. This brings our total repurchases pursuant to the Bid since August 28, 2019 to 3,500,000 shares.

About Quinsam Capital Corporation

Quinsam is a merchant bank based in Canada with a focus on cannabis-related investments. Quinsam also invests in non-cannabis related enterprises. 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 may choose 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:

Advertisement

Roger Dent, CEO
(647) 993-5475
[email protected]

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.

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

Fintech

Mews announces SaaS IPO icon, Steve Cakebread, to join its board

Published

on

mews-announces-saas-ipo-icon,-steve-cakebread,-to-join-its-board

 

Mews , a cloud SaaS and fintech platform that serves the hospitality industry, has announced today the appointment of Steve Cakebread to the company’s board.

Cakebread is famed for leading the financial teams that took Salesforce, Pandora and Yext to IPO and is the author of “The IPO Playbook: An Insider’s Perspective on Taking Your Company Public and How to Do It Right.”

Cakebread serves on the board of Bill.com, which went public in December 2019, and sat on the boards of SolarWinds and eHealth. Earlier in his career, he served as CFO for Autodesk, VP of Finance for Silicon Graphics (now SGI), and Director of Finance at Hewlett-Packard.

Matt Welle, CEO of Mews, commented, “Steve’s capital markets experience is renowned, having led Salesforce, Pandora and Yext through IPOs and beyond. He has a deep understanding of building teams, governance and accountability, which will be instrumental in our growth journey. We are delighted that Steve joins the board at such a crucial time in our growth.”

Mews founder, Richard Valtr, added, “Steve is a seasoned leader with phenomenal experience leading financial teams to success. His invaluable knowledge and strategic oversight are exactly what we need to navigate Mews’ next chapter, support our aggressive growth plans, and cement our position as the market leader in cloud hospitality.”

Cakebread’s appointment comes as Mews experiences exponential growth. In the last 12 months, Mews has reached unicorn status with a valuation crossing $1.2 billion, seen a 250% increase in customers in North America, and achieved over 25 million check-ins at hotels worldwide. Mews recently announced $100m in new financing from Vista Credit Partners to further fuel its organic growth and M&A program through its investment arm, Mews Ventures.

“Mews has a colossal opportunity in the hospitality software and payments markets, sized at over $20 billion, driven by widespread adoption of cloud-based technology. Mews has achieved market penetration in core geographies, serving more than 5,500 hospitality brands worldwide, and is well poised to become the market leader. A key enabler of the company’s success is its marketplace which sees over 1,000 integrations on its platform, offering hoteliers the best solutions to build tailored tech stacks for their needs.”

He added, “Mews has the people and the passion to deliver on its mission and transform hospitality and beyond. The team is driving impressive product development and flawless execution, powering its growth trajectory. I am excited to be a part of Mews’ continued success and to work with the leadership team to accelerate the company’s next phase.”

Advertisement

Mews is trusted by the world’s most innovative hospitality brands, including BWH Hotels, Strawberry and Lark Hotels.

The post Mews announces SaaS IPO icon, Steve Cakebread, to join its board appeared first on HIPTHER Alerts.

Continue Reading

Fintech

VAKRANGEE LAUNCHES ITS OWN PRIVATE LABEL APPAREL PRODUCTS ACROSS ITS KENDRA NETWORK

Published

on

vakrangee-launches-its-own-private-label-apparel-products-across-its-kendra-network

 

Vakrangee proudly announces the sourcing and distribution of its own Private Label Apparel products under the e-commerce business category.

The Company has successfully launched the pilot phase in the apparel segment and would leverage the extensive network of Vakrangee Kendra outlets, including both Franchisee and Master Franchisee channels.

Upon the successful completion of this pilot, Vakrangee will scale the initiative to a pan-India level. Additionally, the Company has future plans to diversify into other consumer and retail product categories, thereby expanding our footprint in the broader market.

The newly launched collection encompasses a wide range of apparel designed for men, focusing on trendy, comfortable, and affordable clothing for all occasions. With this launch, the Company aims to cater to a diverse audience, offering high-quality fabrics, modern designs, and unmatched value.

Commenting on this partnership, Ms. Divya Nandwana, Chairperson of Vakrangee Ltd., said, “We are thrilled to introduce our private label offerings, which not only diversify our product portfolio but also reinforce our position as a key enabler in India’s rural distribution ecosystem. By utilizing our robust Vakrangee Kendra platform, we can ensure the seamless availability of high-quality products to underserved markets, all while maintaining competitive and affordable pricing. This initiative aligns with Vakrangee’s broader vision of providing comprehensive consumer and retail solutions, backed by an unparalleled distribution network and a deep commitment to customer-centric excellence.”

Vakrangee Kendras are exclusive format outlets offering a comprehensive range of products and services across banking, insurance, ATM, assisted e-Commerce, e-Governance and Total Healthcare. The company will continue to add more products and services to offer the customers, a one-stop solution to all their needs. The company is aspiring to be the most trustworthy physical as well as online convenience store across India and positively moving towards Vakrangee Kendra’s new brand philosophy of ‘AB Poori Duniya Pados Mein’.

The post VAKRANGEE LAUNCHES ITS OWN PRIVATE LABEL APPAREL PRODUCTS ACROSS ITS KENDRA NETWORK appeared first on HIPTHER Alerts.

Continue Reading

Fintech

U Power Announces First Half of 2024 Financial Results

Published

on

u-power-announces-first-half-of-2024-financial-results

 

U Power Limited (Nasdaq: UCAR) (the “Company” or “U Power”), a vehicle sourcing services provider with a vision to becoming a comprehensive EV battery power solution provider in China, today announced its financial results for the six months ended June 30, 2024.

Mr. Jia Li, Chief Executive Officer and Chairman of the Board of Directors of the Company, commented, “In the first half of fiscal year 2024, our business achieved 595.7% year-over-year revenue growth to reach RMB13.2 million. This growth stemmed from increased orders from both existing clients and new customers for our battery-swapping stations as the economy continued to gradually recover following the COVID-19 pandemic. We’ve been successful in transforming our vehicle sourcing business to provide EV battery power solutions in China. We believe that this shift has enhanced our competitiveness, and we expect it to expand our future revenue growth potential.”

Ms. Bingyi Zhao, Chief Financial Officer of the Company, added, “Our financial results for the first half of fiscal year 2024 demonstrate our commitment to responsible financial management while simultaneously making strategic investments for our future growth. Our R&D expenses decreased as we have successfully completed several key projects, and we remain committed to innovation and have strategically allocated resources to new and high-potential research initiatives. Our improved credit management practices have yielded positive results, as we generated an expected gain on credit of RMB0.5 million in the first half, compared to a loss in the same period last year. We believe we are well-positioned with the necessary working capital and strong foundation to support our growth plans, including the launch of operations in multiple international markets, and we are confident in the current financial state of the business.”

First Half of 2024 Financial Results

Revenues

Total revenues increased by 595.7% year over year to RMB13.2 million (US$1.8 million) in the first half of 2024.

  • Product sales revenues were RMB12.4 million (US$1.7 million) in the first half of 2024, compared to nil in the same period of 2023, representing 93.9% of total net revenues. This was a result of the Company’s ability to sell more battery stations as the economy gradually recovered from the impact of COVID-19 in 2023.
  • Sourcing services revenues were RMB0.1 million (US$10,000) in the first half of 2024, compared to RMB1.4 million in the same period of 2023, representing 0.6% of total net revenues. The decrease was a result of the company’s shift in focus towards charging- and swapping-related products.
  • Battery-swapping services revenues were RMB0.7 million (US$0.1 million) in the first half of 2024, compared to RMB0.5 million in the same period of 2023, representing 5.5% of total net revenues. The increase was primarily driven by the Company’s operation of a second battery-swapping station beginning in March 2023, which remained operational through the reporting period.

Cost of revenues, gross profit and margin

Total cost of revenues increased 1,893.6% year over year to RMB11.9 million (US$1.6 million) for the first half of 2024, primarily driven by significant revenue growth and strategic shifts in the supply chain. This increase was primarily due to the increased cost of product sales of battery swapping stations.

Total gross profit decreased 0.8% year over year to RMB1.3 million (US$0.2 million) for the first half of 2024, representing a gross margin of 9.8%.

Advertisement

Operating expenses

Total operating expenses were RMB27.7 million (US$3.8 million) for the first half of 2024, representing an increase of 26.8% from the same period last year.

  • Sales and marketing expenses were RMB1.5 million (US$0.2 million) in the first half of 2024, compared to RMB1.0 million in the same period of last year, representing an increase of 46.5%. This increase is primarily due to the increase in marketing expenses for selling battery swapping stations.
  • General and administrative expenses were RMB26.2 million (US$3.6 million) in the first half of 2024, compared to RMB16.8 million in the same period of last year, representing an increase of 55.8%, primarily driven by an increase in audit costs and other professional service costs.
  • Research and development expenses were RMB0.6 million (US$0.1 million) in the first half of 2024, compared to RMB1.9 million in the same period of last year, representing a decrease of 70.4%, primarily due to the decreased UOTTA technology innovation activities related to research and development programs.
  • Expected gain/loss on credit resulted in a gain of RMB0.5 million (US$70,000) in the first half of 2024, compared to a loss of RMB2.1 million in the same period of last year. The decrease was primarily due to the decreased impact of potential uncollectible amounts for advances to suppliers and other current assets, and reflects improved credit management practices and a stronger collection process.

Net loss

Net loss was RMB26.5 million (US$3.6 million) in the first half of 2024, compared with RMB7.2 million in the same period of last year.

Loss per share

Basic and diluted loss per share were both RMB7.42 (US$1.02) in the first half of 2024, compared with basic and diluted loss per share of RMB6.88 in the same period of last year.

Liquidity

As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of RMB40.5 million (US$5.6 million), compared with RMB36.2 million as of December 31, 2023.

Business Developments

On August 5, 2024, the Company announced that it signed a Memorandum of Understanding with Velo Labs Technology Ltd., a global fintech company, to establish a battery infrastructure investment ecosystem in Thailand. This collaboration aims to accelerate the development of battery bank operations within the UOTTA battery-swapping ecosystem.

On July 3, 2024, the Company announced that it had signed a Memorandum of Understanding (“MoU”) with Pattaya AI Terminal Co., Ltd. to jointly drive the strategic development of green logistics and electric vehicle (“EV”) infrastructure in Thailand.

Advertisement

On June 5, 2024, the Company announced that its UOTTA technology and battery swapping station model is to be adopted in a strategic collaboration between UNEX EV B.V. (“UNEX”) and Associação Nacional dos Transportes Rodoviários em Automóveis Ligeiros (“ANTRAL”). ANTRAL is an association of companies in Portugal, representing public passenger road transport companies operating light vehicles designated as taxis. Through their collaboration, UNEX and ANTRAL aim to significantly reduce greenhouse gas emissions in the transport sector by 2030, in line with the European Union’s decarbonization targets and Portugal’s regulatory requirements for taxi vehicles.

Exchange Rate Information

This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.2672 to US$1.00, the exchange rate on June 30, 2024, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2024. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statements 

This press release may contain “forward-looking statements”. Forward-looking statements reflect the Company’s current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.

The post U Power Announces First Half of 2024 Financial Results appeared first on HIPTHER Alerts.

Continue Reading
Advertisement
Advertisement European Gaming Congress 2024

Latest news

Trending