Quinsam Capital Corporation Announces Closing of $11.5 Million Private Placement Financing Co-led by Canaccord Genuity and Gravitas Securities
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION BY ANY UNITED STATES NEWS DISTRIBUTION SERVICE
TORONTO, Dec. 11, 2017 — Quinsam Capital Corporation (“Quinsam” or the “Company”) (CSE:QCA) is pleased to announce that, further to its news releases dated November 6, 2017 and November 22, 2017, it has completed on a brokered and nonbrokered basis an offering of 46,000,000 units (“Units”) by way of a private placement at a price of CAN$0.25 per Unit, for total gross proceeds of approximately CAN$11,500,000. Quinsam issued an aggregate of 43,160,000 Units for gross proceeds of approximately CAN$10,790,000 pursuant to the brokered offering (the “Brokered Offering”) co-led by Canaccord Genuity Corp. and Gravitas Securities Inc. (together, the “Agents”), and 2,840,000 Units for gross proceeds of approximately CAN$710,000 pursuant to Quinsam’s concurrent non-brokered offering (the “Non-Brokered Offering” and together with the Brokered Offering, the “Offering”).
Each Unit consists 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 entitles the holder to purchase one Common Share at a price of CAN$0.40 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 Brokered Offering, as compensation for their services, the Agents received a cash commission of CAN$863,200 and were issued 1,479,000 Units. In addition, the Agents received 3,452,800 Agents’ warrants (the “Agents’ Warrants”) equal to 8.0% of the total number of Units sold pursuant to the Brokered Offering. Each Agents’ Warrant is exercisable into one Unit at an exercise price of CAN$0.25 at any time prior to the date that is thirty-six (36) months following the closing date of the Offering, whereupon the Agents’ Warrants will expire.
All securities issued or issuable pursuant to the Offering are subject to a hold period of four months and one day.
Quinsam intends to use the net proceeds from the Offering to purchase financial interests in cannabis companies and for general working capital purposes.
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 Corp.
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