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QIS Update #17 2013 - August 2nd 2013

Included in this update:

  • Cobra Venture files its second quarter financial statements
  • NTG Clarity Networks closes first and second tranche of convertible debenture financing
  • Virtutone Networks announces strong July 2013 wholesale revenues


We have set November 12, 2013 as the date for our next Vancouver Small-Cap Conference. Next week we are going to begin to fill the company presentation agenda so if you have a company that wants to participate please contact us as soon as possible to reserve the best speaking times. Investors will be able to register for the event next week as soon as we update the website.


Please feel free to email us anytime at or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.


Cobra Venture Corporation (CBV:TSX-V)
Current Price: $0.20 (coverage commenced May 22/07 - $0.205)


Cobra Venture has released its financial results for the three and six months ended May 31, 2013.


Cobra did not have any significant events or transactions that occurred during the six month period ended May 31, 2013.


As at May 31, 2013, the company had working capital of $1,318,307 or $0.08 per share as compared to working capital of $1,579,996 as at November 30, 2012.


Subsequent to the period ended May 31, 2013, the company entered into a Participation Agreement in which Taku Gas Limited granted the company (and two other arm’s length companies) the right to equally participate to drill and complete up to 4 initial test wells. Under the agreement, Cobra will pay 29.33% of the drilling costs of each Test Well to earn a net working interest of 14.665% in each well. Based on all 4 Test Wells being drilled, the company’s net earned position will be equal to 14.665% of 1640 acres.


For a more detailed look at Cobra Venture’s operational performance during the period, please view Cobra’s complete financial statements and MD&A on SEDAR at



  3 Mos. Ended May 31 6 Mos. Ended May 31
  2013 2012 2013 2012
Revenues $27,308 $61,711 $39,746 $127,049
Direct Costs 13,456 39,937 27,978 73,727
Income Tax Recovery 47,791 37,424 103,983 170,590
Income fr. Disc. Ops. - 22,074 - 3,890,071
Net Income (129,804) (89,204) (273,249) 3,698,363
      per share ($0.008) ($0.005) ($0.017) $0.21



(As at May 31, 2013)
Current Assets $ 1,407,863
Total Assets 5,772,626
Current Liabilities 89,556
Long-Term Debt nil
Shareholders' Equity 5,627,436


NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.32 (coverage commenced Feb. 4/10 - $0.045)


NTG Clarity Networks Inc. has announced that it has closed its non-brokered private placement for CAD $577,000 of the $1,000,000 total principal amount. The Company raised $577,000 in the first tranche announced on July 30 and $295,000 in the second and final tranche announced on August 1. The Debentures shall bear interest at the rate of ten (10%) percent per annum and shall mature on July 29 and August 1, 2015 (the Maturity Date). The principal amount of the Debenture will be payable on the Maturity Date and accrued interest will be payable every six months.


The Debenture is convertible into common shares of NTG Clarity at the option of the holder at any time prior to the Maturity Date, at a conversion price equal to CAD$0.25 per Common Share. On conversion, the Holder will receive accrued interest on the Debenture from the date of issue of the Debenture up to and including the last day prior to conversion.


Forced conversion of the Debenture into Common Shares will occur, at a conversion price of CAD$0.25 per Common Share, if, at any time, the weighted average trading price of the common shares of the Company listed on the TSX Venture Exchange is equal to or above CAD$0.35 per share for a period of 20 consecutive trading days.


The Private Placement is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Debenture and the underlying securities, as applicable, will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.


The Company intends to use the net proceeds of the Private Placement predominantly as working capital to fund NTG Clarity's growth. The Private Placement was a related party transaction within the meaning of applicable Canadian securities laws as the subscribers included directors and officers of the Company that subscribed for convertible debentures in the aggregate principal amount of $250,000. The Board of Directors of the Company (excluding the interested parties) approved the transaction. The transaction was exempt from valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction was less than 25 percent of the Company's market capitalization.


A second and final tranche of this convertible debenture financing was closed on August 1, 2013.  The total amount raised in tranche two was $295,000.


QIS Capital: NTG Clarity has raised the funds it required to carry out work on the recently reported $9.2 million in new contracts. A summary of recent news releases and financial results is included below:


Q2/13 Revenues $2,149,380 Net Income $829,403 ($0.03 per share)
Q1/13 Revenues $1,486,872 Net Income $202,064 ($0.01 per share)
Q4/12 Revenues $1,331,815 Net Income $451,374 ($0.02 per share)
Q3/12 Revenues $1,386,554 Net Income $176,973 ($0.01 per share)

Total Revenues $6,354,621 Net Income $1,659,814 ($0.055 per share)


Recent Announcements:

June 13/13 - NTG Clarity Networks wins $140,000 contract in Egypt
June 12/13 - NTG Clarity to develop mobile shopping with Mi-World
June 3/13 - NTG Clarity wins $3.8-million contract
May 30/13 - NTG Clarity wins $4.2-million contract with mobile firm
May 21/13 - NTG Clarity receives $1.1-million (U.S.) contract


Virtutone Networks Inc. (VFX:TSX-V)

Current Price: $0.275 (coverage commenced Sep. 9/11 - $0.10)


Virtutone Networks Inc. has announced that its wholesale division generated over $3.7 million in revenue for the month of July.


We are excited to share the results of this record month for Virtutone. We have been growing at a substantial rate, and generated more revenue in July than we did in all of last year. This revenue comes from ongoing relationships that we have developed with other telecommunication carriers. In addition, we’re continually adding new carriers to our customer base, and expect our revenue growth to continue, said Jason Allen, Chief Executive Officer of Virtutone.


The Company looks forward to providing continued updates.


QIS Capital: Virtutone has recently announced revenues of $2.58 million in May, $2.2 million in June, and $3.7 million in July. For the upcoming second quarter, that would put the company at $8.48 million in revenues compared to revenues of $696,022 reported in Q2 last year.



Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 393,000 shares of Cobra Venture Corporation, 1,073,000 shares and 100,000 options of NTG Clarity Networks Inc. and 994,000 shares of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.

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