Quinsam Capital Corporation Announces $10,000,000 Brokered Private Placement Co-Led by Canaccord Genuity and Gravitas Securities
TORONTO, Jan. 12, 2018 —
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITEDSTATES
Quinsam Capital Corporation (“Quinsam” or the “Company”) (CSE:QCA) is pleased to announce that it has engaged Canaccord Genuity Corp. (“Canaccord”) and Gravitas Securities Inc. (collectively with Canaccord, the “Agents”) to act as colead Agents on a commercially reasonable efforts basis in connection with a brokered private placement of up to 16,666,666 units (“Units”) at a price of CAN$0.60 per Unit, for gross proceeds of approximately $10,000,000 (the “Offering”). The Company has also granted the Agents an option to increase the size of the Offering by up to $10,000,000 (the “Agent’s Option”). Closing of the Offering is expected to occur on or about February 8, 2018. Each Unit will consist of one (1) common share in the capital stock of Quinsam (“Common Share”) and one-half (1/2) of one common share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder to purchase one Common Share at a price of CAN$0.80 per Common Share until the date which is twenty-four (24) months following the closing date of the Offering, whereupon the Warrants will expire.
In connection with the Offering, as compensation for their services, the Agents will receive 8% of total gross proceeds raised payable in cash or Units at the option of the Agents. In addition, the Agents will receive warrants (“Agents’ Warrants”) equal to 8% of the number of Units sold pursuant to the Offering. Each Agent Warrant will entitle the holder to purchase one Unit of the Company at a price of CAN$0.60 per Unit at any time prior to the date that is twenty-four (24) months following the closing date of the Offering, whereupon the Agent Warrants will expire. The Agents will also receive a corporate finance fee equal to 2.3% of the Units placed pursuant to the Offering which will be payable in Units of the Company.
“We are delighted to have two of Canada’s leading independent brokerage firms continuing to support the Company,” said Roger Dent, CEO of Quinsam.
Quinsam intends to use the net proceeds from the Offering to purchase financial interests in cannabis companies and for general working capital purposes.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange (“CSE”). The securities issued and issuable pursuant to the Offering will be subject to a four month and one day statutory hold period. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Quinsam Capital Corporation
Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. 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 chooses 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:
Roger Dent, CEO