Quinsam Reports Q2/2025 Results

Executive Summary

• Quinsam Capital Corporation reported its Q2/2025 financial results, showing an improved net loss compared to the same period in 2024.
• The company highlighted liquidity events from its private portfolio, including an exchange of unlisted shares in Music Royalties for listed shares in Royalties Inc. and the commencement of trading for its Reeflex investment.
• The quarter's loss was primarily attributed to a decline in the value of holdings in California Nanotechnologies, while the company noted pending liquidity events for other portfolio companies like Peninsula and Theracann.

Key Details

• Financial Performance (Q2/2025 vs Q2/2024):
  • Net Loss: $0.2 million (Q2/2025) vs. $0.4 million (Q2/2024).
  • Basic EPS: $0.002 loss (Q2/2025) vs. $0.005 loss (Q2/2024).
  • Fully Diluted EPS: $0.002 loss (Q2/2025) vs. $0.005 loss (Q2/2024).
• Net Asset Value (NAV):
  • Net assets were approximately $0.10 per share outstanding as of June 30, 2025.
  • Total of more liquid investments (cash, public equities, derivatives) was approximately $0.06 per share, up from the previous quarter.
• Portfolio Updates & Liquidity Events:
  • Royalties Inc.: Exchanged unlisted shares in Music Royalties for listed shares in Royalties Inc. The timing was favorable as Royalties Inc. prevailed in a legal claim shortly after the trade.
  • Reeflex: Investment commenced trading; share price change noted as modest, with optimism for fall prospects.
  • California Nanotechnologies: Loss in the quarter related primarily to a decline in the value of these holdings.
  • Pending Liquidity:
    • Peninsula: US single-family rental business making efforts to list in coming months.
    • Theracann: Nearing a listing as Beyond Farming through a merger with Sprout AI on the CSE (previously fully written off).
    • Electro Metals: Announced intent to list through a merger with BWR Exploration in the fall.
• Issuer Bid Activity:
  • Acquired 996,000 shares in Q2/2025 pursuant to an issuer bid.
  • Total purchases under the current bid (commenced Sept 6, 2024, terminates Sept 5, 2025) are now 3,951,000 shares.
  • Total shares repurchased and cancelled since 2018 exceed 20 million.
• Future Outlook:
  • Management anticipates it may take time to find suitable value-creating transactions due to few new listings.
  • Plan is to patiently wait for high-quality transactions subject to shareholder and regulatory approvals.

Notable Quotes

• "We obtained liquidity on one of our long-term private investments in the quarter... Our timing here was fortuitous as Royalties Inc. prevailed in a legal claim shortly after we negotiated our trade." — Roger Dent, CEO
• "Our loss in the quarter is related primarily to a decline in the value of our holdings in California Nanotechnologies." — Roger Dent, CEO
• "At June 30, 2025, we continued to have net assets of approximately $0.10 per share outstanding... Our shares continue to trade at a very steep discount from NAV." — Roger Dent, CEO