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QIS Update #19 - 2016 - Latest news from Fairmont Resources, NTG Clarity Networks and Quattro Exploration and Production - September 20th 2016



Included in this update:

  • Fairmont Resources featured in Swiss Resource Capital’s 2016 Lithium Report
  • NTG Clarity receives over $1.5 million in new purchase orders
  • Quattro Exploration & Production engages Durham Capital as financial advisor and provides corporate update



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




Fairmont Resources Inc. (FMR:TSX-V)

Website: www.fairmontresources.ca
Current Price: $0.11 (coverage commenced February 18/16 - $0.025)


Fairmont Resources recently received a 2-page feature profile in Swiss Resource Capital’s 2016 Lithium Report. This comprehensive report explores the lithium industry, demand, supply and applications for lithium. We have the full report available for distribution for anyone who would like a copy. Please email us at info@smallcaps.ca or call us at (250) 377-1182 to receive a free copy.





NTG Clarity Networks Inc. (NCI:TSX-V)

Website: www.ntgclarity.com
Current Price: $0.09 (coverage commenced Feb. 4/10 - $0.045)

NTG Clarity Networks Inc. recently announced that the company has received over $1,000,000 in Purchase Orders from a global leader in delivering ICT solutions. NTG will provide Project Management, Consultation and Data Migration expertise, over the next 18 months, in the Gulf region. These Purchase Orders are expected to lead to further orders from the same customer, which are currently being negotiated.

NTG Clarity is also pleased to announce that the company has received additional Purchase Orders, from other customers, of approximately $510,000 for resource-related ICT solutions.

The resource sector has been under tremendous stress for over a year now, however new orders for the company’s products and services, from this industry, are beginning to emerge once again. Management expects to see continued growth from this sector through the remainder of 2016 and into 2017.

“At NTG Clarity, we have worked hard on executing our strategy of establishing ourselves as a leading provider of quality telecom software products and services in the Gulf region. These Purchase Orders reflect the increasing satisfaction and confidence of our customers with regards to our extensive expertise in telecom systems and operator requirements.” said Ashraf Zaghloul, NTG Clarity’s Chairman and CEO.

QIS Capital: While NTG Clarity had improved financial results in Q2 compared to Q1, the company needs to continue to boost revenues to offset expansion costs incurred over the last 12 months. These recent contracts are expected to lead to new revenue sources along with several potential new contracts that the company is negotiating. Management has indicated that financial results over the second half of the year are expected to continue to improve through increased sales and cost savings.





Quattro Exploration and Production Ltd. (QXP:TSX-V)

Website: www.qxp-petro.com
Current Price: $0.07 (coverage commenced Sep. 3/15 - $0.18)

Quattro Exploration and Production Ltd. has announced the engagement of Durham Capital Canada Corporation (Durham) as its financial advisor to assist with the company’s pursuit and evaluation of various options with respect to a proposed funding of up to $25 million in senior or subordinated debt, supported by the remaining assets of the company upon the completion of its $24.5 million Divestiture Plan initially announced on August 4, 2016.

Furthermore, as anticipated with the company’s expanded plan announced on August 11, 2016 to increase its Divestiture plan to $30 million while under Court Protection, on September 8 Quattro made an application to the Court of Queen’s Bench of Alberta (the Court) seeking to transfer its restructuring proceedings initially commenced on August 10, 2016 under the Bankruptcy and Insolvency Act (the BIA Proceedings) to the Companies’ Creditors Arrangement Act (CCAA).

The Court has granted the company’s application and issued an order under the CCAA (the Initial Order) under which the company will now be continuing its divestiture and restructuring plan.

Quattro has also engaged NRG Divestitures Inc. (NRG), a Calgary-based independent marketing firm to act as advisor and agent for the divestiture and sale of certain of Quattro’s assets. In addition, NRG will manage the solicitation of, and act as an advisor on all other offers received for the remaining assets deemed non-core by the corporation.

“Quattro is encouraged by the number of proposals and inquiries it has received to date for both the divestiture of non-core assets and the financing of the development of its Core Properties,” said Leonard B. Van Betuw, President and CEO. “The combination of Durham as Financial Advisor dedicated to the financing objectives of the Corporation and NRG as agent for Quattro’s divestiture program is a source of growing confidence that Quattro’s plan to date is quickly gaining momentum. With the granting of the CCAA order, both the divestiture and financing plans will be completed within the orderly confines of the CCAA. Each mandate will have the opportunity to be executed in an expedited fashion, incorporating the flexibility and opportunities afforded to the Company under the Act. It is Quattro’s objective to ensure that all Stakeholder concerns will continue to be managed in an equitable manner.”

Quattro is also pleased to announce the closing of its previously announced purchase of the 100% interest in the El Cedro License, Block 6-2012 in Guatemala, consisting of 34,723 hectares in the South Peten Basin.

The final purchase price, including adjustments for the acquisition is CDN $6,175,000, to be paid through the issuance of 60,000 non-voting, Class C, series 3 Preferred Shares at a deemed price of $100 per share (Preferred Shares) and the assumption of approximately $175,000 in liabilities related to current work in progress.

The Preferred Shares bear an annual yield of $3.50 per share.

“In the short time that has passed since embarking on creditor protection, Quattro has continued to be extremely encouraged that the capabilities within the Company are becoming more appreciated by both financiers and the industry at large. This is reflected in the due diligence process that has been conducted to date and the unsolicited inquiries from industry that continue to be received by the Company. Through the Company’s Divestiture and Capitalization plan that is underway, the Company anticipates achieving the additional financial capacity and revitalization necessary to continue to reward its shareholders for supporting the Corporation’s targeted exploration and production efforts in combination with the acquisitions and consolidation that has been conducted over the past 5 years,” said Mr. Van Betuw.

Quattro is also pleased to be a member of the 8020 Connect network, and invite all our shareholders to become members. 8020 Connect (www.8020connect.com) is the investment industry’s newest social network, developed to deliver corporate information to shareholders, investment industry experts and like-minded investors, while enabling these member groups to interact with each other and with our corporate management team.

Through the 8020 Connect Shareholder and Investor Network, Quattro is able to communicate its corporate message and update project advancements and financial information to all shareholders and investors in a timely and effective fashion. The 8020 Connect social media component provides direct interaction with shareholders, allowing the company to answer questions and inquiries directly or in group forums. The 8020 Connect network will also allow Quattro to expand its audience exponentially to interested investors and industry experts worldwide.

QIS Capital: Quattro continues to progress with its planned divestitures and is hoping to establish a new foundation from which to grow despite the challenges in the industry. There is significant financial upside if the company can close the $30 million divestiture as previously released along with additional non-core sales. We’re watching along with everyone else and hope that the sale concludes in the immediate future.



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 722,000 shares and 350,000 warrants of Fairmont Resources Inc., 1,135,000 shares of NTG Clarity Networks Inc., and 267,000 shares of Quattro Exploration and Production Ltd. 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 - 2016 QIS Capital Corporation.

Canadian Small Caps

 
Canadian Small Caps

CLICK HERE to view the presentations from the Spring 2016 Small-Cap Conferences.

We are pleased to publish the PowerPoint presentations from The Small-Cap Conferences that were held in Calgary on March 30, 2016 and in Vancouver on May 3, 2016.

We encourage investors to review the presentations and contact the companies with any further questions.

www.smallcapconference.ca/presentations.php
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