Quinsam Capital Corp

Well, it's 10 o'clock, so... We're going to get... Hold on, I'm just going to mute people here.

Hello.

Hello. All right. Well, welcome, everybody, and at least welcome to the third quarter conference call. I'm going to assume that everyone's already looked at the results and probably read the press release, so I'm not going to go into, you know, what's already there. Third quarter, basically, we were slightly in the black, which is not terribly dramatic one way or the other. And there wasn't a lot of activity in the court. So really, the key update is what's going on here in Q4. We have two of our private investments that are both at this stage looking to list. The largest one, we've carried it under the name Peninsula. It's announced to go public financing with a syndicate of large investment dealers here in Toronto under the name of Rentax. It's a U.S. single-family rental business. It's out there in the market now trying to raise funds at $1.90. Our carrying value is quite a bit below that. At this stage, they're in marketing. I understand that it's going sort of okay. We're hopeful that the transaction will complete. There's probably, I'm guessing, some risk in the $1.90 price, but we'll see. That's an important development for Q4, and obviously we hope that it goes ahead. The other gold public that we're looking at here in Q4 is a company called Electro Metals. That is a, you know, it's a relatively traditional Canadian mining story, copper gold properties. And, you know, the market obviously for mining is relatively good right now. They are awaiting final approval from the exchange to list. I understand they're down to the short strokes and that they expect to get final listing approval in the next week or two. And once they have that listing approval, they believe that they have the funds lined up to close and then commence trading. So those are probably the two big things in front of us for Q4. Between the two of them, there's about two cents of NAV that are in play here. So, you know, we hopefully will see the amount of liquid investments move from the six cent level up to eight cents. And obviously, hopefully beyond that, you know, with the expected listing prices of both electrometals and um uh peninsula uh uh above where we're carrying them excuse me roger yeah quick question uh electro meta metals what what are they into well it's fairly traditional mining story this is actually a company that we bought uh quite a long time ago uh as a cannabis company You know, back in the day, it was called Ancient Strains, and it was run by Daryl Hodges, who used to run Jennings Capital. And he was, you know, a mining guy for most of his life. He's a geologist. You know, he always focused on mining companies. And when the cannabis market turned, he decided to reposition it as a mining play. So, he's been working with that for the last two or three years. He tried to list about 18 months ago, but obviously mining markets were much less favourable than they are today. And that attempt did not go ahead. He couldn't get the money. But, you know, obviously now we're looking at a much more favorable mining market.

What's the commodity? Is it gold? It's copper gold.

Oh, copper gold. Okay. You know, most of the NAB is copper, but it's got a significant gold byproduct. You know, both of those commodities are, you know, quite strong at this stage.

Thank you.

And it's a pretty, you know, it's a very conventional asset. It's Ontario. It's, you know, it's got a resource in place. Like it's a pretty, you know, conventional story and it should be able to complete its financing unless it's just a question of value, I would say. Thank you. So those are, on the private side, the two visible situations right in front of us. The other one that is progressing well, I would say, is asynaptic, which is about two cents of NAV. Asynaptic is developing a CBD treatment for epilepsy, and it's about to start a clinical trial. It's been approved by the FDA, and Boston's Children's Hospital is going to do the trial. They also have been working informally on a second indication to use the same treatment for Parkinson's, And they've actually been given a $3 million grant by the Michael Fox Foundation to take it from its sort of informal trial. It's now basically being given to some patients and has been for about a year. outside of a formal trial with very good results. So the Michael J. Fox Foundation is funding it to go into a formal trial for approval for Parkinson's as well. So that, you know, it's progressing well. It had hoped to start doing a U.S. go public process this year. It's not going to happen, I don't think, by year end, but... Hopefully early in the new year that will begin its march to being public. Otherwise, as far as Q4 is concerned, we have one company, Nulox Gold, which It's under a cease trade at present because its financials are late and we decided to be conservative to take it to a valuation of zero in Q3. We definitely do not expect it ultimately to be valued at zero. It was trading around five or six cents before it was halted and it raised money at seven cents as recently as about six weeks ago. We expect it to be back and trading at those sorts of values in and around the end of the year. But to be conservative, we took that down. So that, hopefully, is money in the bank for Q4. We also have a few companies that are, at this point, even with the sell-off of the last day or two, above where they were at the end of the quarter. Blue Metric, Neoterex, Royalties Inc., which won its lawsuit appeal. and CityView Green, which is now a cryptocurrency play, no longer a cannabis play. So, with any luck, Q4 will be a decently profitable quarter, but obviously there's volatility out there, and we'll have to see what happens over the next six weeks or so. And with that, open it up to questions. If anyone's got a question, just take yourself off mute and

Question, Roger. Anything coming forward about a transaction?

Transaction. So, you know, we've had, you know, some very good discussions this quarter with a company that we're quite interested in. It's an American-based company. And because of that, there are some income tax complications for the main shareholders. They obviously don't want it to be a taxable event, but there are some problems in making it not a taxable event for them. So they are kind of mulling some structural and tax issues. But it is quite promising. It's a company that's in a very interesting business. It makes nice cash flow. The valuation is reasonable. And their funding requirement is quite appropriate for us. They don't really actually have a funding requirement. They're a cash flow positive business. So really for them, what they find attractive is the ability to raise, you know, for them a relatively small amount of money with a small amount of dilution and, you know, have a company that would have a very tight float that they would, you know, be in a position to influence the share price of. So, you know, for us, it's quite interesting because we think we would get a quite decent win coming out of the gate. But this tax issue is something that's, you know, it's got to be solved because if it can't be solved, then, you know, they're not going to basically take their whole company value into income and pay tax on it on a go public. It's just not viable.

Okay.

Thank you. Otherwise, I would have to say there's not too much going on. I mean, we certainly could go and do a mining transaction, I think, quite easily if we chose to. It's really not what I would want to do. I'd much rather get into an operating business with cash flow or very, very near-term cash flow, you know, don't really want to go into a mining exploration situation where it's, you know, it's significantly cash flow negative and you're just kind of hoping for, you know, geology to work out your way. That's something that, you know, it's certainly, you know, fine for an investment or two, you know, happy to make those sorts of investments, but not sure I want to bet the whole portfolio on one mining situation.

Yeah, I would have to agree with that. All right, that's good for me. Any other questions?

Well, there's no further questions. Thanks for attending, and we'll talk to people later.

Thanks, Roger.

Bye-bye. Have a good day. Thank you.