Quinsam Capital (CNSX:QCA) used its fourth-quarter conference call primarily as an open forum for investors, with management highlighting a small Q4 profit, recent net asset value (NAV) trends, and several portfolio developments that it said have been driving gains into early 2025.
Q4 results and near-term NAV outlook
The company said it generated “a small profit” in the fourth quarter, which it said had a positive impact on NAV. Management added that NAV was “still at that point approximately CAD 0.10.”
Deep Sea Minerals investment cited as early-quarter standout
Management pointed to an investment made early in the current quarter in Deep Sea Minerals as a notable recent contributor to NAV. Quinsam said it invested CAD 100,000 at CAD 0.40 per share and that the stock was “currently trading over CAD 2.00.”
According to management, the position had contributed “about CAD 0.005” to NAV at the time of the call. However, it also cautioned that the investment remained subject to a four-month hold period and that “when the hold comes off, there may be selling,” adding it was possible “the stock won’t stay here,” even though it characterized the situation as “nice…for the time being.”
Nevada Organic Phosphate performance since year-end
Quinsam also highlighted “really nice performance” from Nevada Organic Phosphate. Management said the stock “was at CAD 0.25 yesterday,” while Quinsam’s purchases were made through “a number of investments” at “a combination of CAD 0.05 and occasionally CAD 0.03.”
Management described it as “a really nice performer, particularly since year-end,” in the context of broader improvements it said it has been seeing across markets and portfolio holdings.
Peninsula: additional investment and direct listing plans
Another portfolio holding discussed was Peninsula, which management said it has owned “for quite some time and a number of years.” It described Peninsula as a U.S. residential rental business owning “2,000 single-family homes,” primarily in New York State and Cleveland, with some homes in other areas.
Management said Peninsula had been considering a reverse takeover (RTO) late last year, but the plan was disrupted after “Trump started making comments about corporate ownership of single-family homes,” which it said “kind of wrecked that situation at that point.” Instead, management said Peninsula is now “going ahead with a direct listing.”
During the first quarter, Peninsula “needed some money quickly to close an acquisition and pay for the listing costs,” management said. Quinsam and other parties agreed to “backstopp[e] a rights issue at a very low bargain price,” resulting in Quinsam adding CAD 250,000 of Peninsula “just recently at CAD 0.50.” Management noted this matched the price Peninsula raised money at “at the very beginning three or four years ago.”
Management said the company is now looking at a situation where Peninsula’s “NAV’s about CAD 1.90” and that it is “proposing to go out with a 3% dividend yield on that CAD 1.90 in the coming weeks.” It emphasized uncertainty around how a direct listing will trade, saying it is “very hard to say with a direct listing…what something will trade at.”
Still, management suggested that, based on the indicated dividend and stated NAV, it expects the listing could trade “at a very significant premium to where we put that most recent money in.”
RTO search continues; Bond Intelligence mentioned as early-stage possibility
Quinsam said it has “been continuing to look for an interesting RTO transaction” and noted that one investment made in the current quarter “has the potential to be that transaction,” while stressing it is “early days.”
Management identified the company as Bond Intelligence, describing it as operating “in the electronic media business,” placing “screens in major retail chain stores” and participating in “a revenue share on advertising.” It said Bond Intelligence completed a funding round and is “planning to list in the next number of months,” and that Quinsam participated to “get to know them better.”
Management said it is “a possibility that something happens with them…for some or potentially all of our assets,” though it added that it considers “more likely some of our assets.” It said it could not assess the probability at the time of the call and characterized it as “probably still a minority chance,” while noting it remains “a possibility.”
The call concluded without investor questions, with management inviting shareholders to reach out and indicating it would provide further updates next quarter.
About Quinsam Capital (CNSX:QCA)
Quinsam Capital Corporation operates as an investment and merchant banking firm in small-cap market in Canada. The company primarily focuses on cannabis-related investments. Its activities include acquisitions, advisory services, lending activities, and portfolio investments. The company was incorporated in 2004 and is based in Toronto, Canada.
