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QIS Update #23 - 2016 - Latest news from Fairmont Resources, NTG Clarity Networks and Quattro Exploration and Production - December 29th 2016

Included in this update:
  • - Fairmont Resources proposes private placement, receives Grabasa extension
  • - NTG Clarity announces shares for debt private placement
  • - Quattro Exploration and Production announces issuance of preferred shares as El Cedro payment

2016 Summary, 2017 outlook

First off we hope everyone had a very Merry Christmas and we wish you and your family a very Happy and Prosperous 2017.

We’re actually very happy to see 2016 in our rear view mirror. This was a very challenging year for just about every one of our Feature Companies as financing was basically non-existant in the small-cap space and our companies were impacted significantly from joint venture partners going bankrupt to expansion at the wrong time. We had a couple of nice runs (thank you FMR, BBI, LTE, and TNC) but we suffered setbacks with NCI, QXP, LM, LUX, and DAL. Then we had stocks with lots of promise like SIM and OML that never seemed to be able to come out with the numbers that everyone was hoping for. We also suffered several setbacks as we tried to revamp our websites and improve functionality. Overall it was a very frustrating year and to be honest we lost some of our enthusiasm and hence some of our desire to do more research toward the end of the year. The good news is that the New Year always rolls around and with that some renewed optimism to get back into research gear, plan our next investment conferences and improve our services for our subscribers. As for our Feature Companies, we have some reason to be optimistic as we turn the page. NTG Clarity continues to dig out of its expansion woes and is seeing renewed optimism from its clients in the Middle East. Newlox Gold has some positive momentum in getting the necessary funding to recommence operations. Quattro is expecting to complete its significant asset sale in very short order. We continue to monitor Fairmont Resources for an update on its financing to complete its Grabasa purchase and Lingo Media management has indicated that the worst is behind after a very disappointing Q3 so we are watching for improvement in Q4.

We would like to take this opportunity to thank all of our subscribers for their patient continued support during 2016 and we look forward to taking on the challenges and seeing much improvement in 2017.

It is important to note that the last day to complete a trade for Canadian stocks in 2016 was Dec. 23. Any stocks purchased or sold after Dec. 23 will not settle until 2017, so any capital gains or losses would not be able to be used on your 2016 tax return.

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


Fairmont Resources Inc. (FMR:TSX-V)

Current Price: $0.075 (coverage commenced February 18/16 - $0.025)

Fairmont Resources Inc. has announced that it has received an extension to complete the payment for Granitos de Badajoz (Grabasa) until February 22, 2017 from the Spanish Court in Badajoz.

"We are optimistic that a financing solution is close at hand for completing the acquisition of Grabasa. With imports increasing 10.9% for worked granite into the United States from Spain in the 3rd Quarter 2016 versus 3rd Quarter 2015 when other countries have seen large decreases, other than China, we see an acceptance of Spanish product into the United States market, and for Grabasa this is a new large target market" states Michael Dehn, President and CEO of Fairmont Resources.

The U.S. imports of Worked Granite (sawn, one-side polished), a key product produced at Grabasa when last in operation, have generally fallen for most producing nations other that Spain where there was a 10.9% increase, and China where there was a 0.3% increase.


Fairmont Resources Inc. has announced a proposed non-brokered private placement financing of up to 2,142,857 units (the NFT Units) at a price of $0.07 per NFT Unit for gross proceeds of up to $150,000 and a minimum of 1,250,000 and maximum of 1,875,000 units (the FT Units) at a price of $0.08 per FT Unit for gross proceeds of up to $150,000.

Each NFT Unit will be comprised of one common share of Fairmont and one common share purchase warrant (a NFT Warrant), with each NFT Warrant entitling the holder to purchase one additional common share at $0.15 per share for a period of two years from the date of issue. Each FT Unit will be comprised of one flow-through common share of Fairmont (of which $0.072 of each flow-through common shares will be committed to qualifying expenditures) and one common share purchase warrant (a FT Warrant), with each FT Warrant entitling the holder to purchase one additional common share at $0.15 per share for a period of two years from the date of issue.

Subject to TSX Venture Exchange approval, Fairmont may pay a finder's a fee in cash and/or warrants. The finder's warrants will be on the same terms as the Warrants under the private placement.

Closing of the private placement is subject to TSX Venture Exchange approval.

The proceeds from the private placement will be used for work on Fairmont's properties and general working capital purposes

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

Current Price: $0.065 (coverage commenced Feb. 4/10 - $0.045)

NTG Clarity Networks Inc. has announced that it plans to issue up to 5.5 million common shares of the company at a deemed price of $0.07 per share to settle indebtedness of approximately $385,000 owed to employees, senior officers, directors and consultants of the company. The transaction will help NTG reduce it debts and improve its balance sheet. Completion of the transaction is subject to customary conditions including approval of the TSX Venture Exchange.

A portion of the shares for debt transaction will be a related party transaction within the meaning of applicable Canadian securities laws as some of the subscribers include directors and officers of the company who will subscribe for an aggregate of 1,871,429 common shares in settlement of indebtedness of $131,000. The Board of Directors of the company approved the transaction. The transaction will be exempt from valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction is less than 25 percent of the company's market capitalization.


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

Current Price: $0.07 (coverage commenced Sep. 3/15 - $0.08)

This week, the CRTC ruled that high-speed Internet should be a basic service available to all Canadians and millions will be spent over the next several years to expand broadband services to remote regions of the country.

It is important to note that Quattro Exploration and Production Ltd., through its wholly-owned subsidiary, Quattro Innovations Inc., could benefit from this ruling through its hyMesh product. hyMesh is a type of Mesh network which combines the ease of deployment and flexibility of Wireless Sensor Networks (WSN) with the high throughput, low cost and worldwide availability of WiFi equipment.

CRTC News:

hyMesh info:


Quattro Exploration and Production Ltd. has announced that it proposes to issue 1,800 Series 5, Class C Preferred Shares in full payment of the US$136,500 cash obligation arising pursuant to the acquisition of the 100% interest in the El Cedro License, Block 6-2012 in Guatemala, as announced in September 2016. The Preferred Shares are of the same class issued pursuant to the acquisition. The shares are priced at $100 per share and pay an annual preferred dividend of $3.50 per share. The holder will have the right on the anniversary of the 2nd year of issuance to convert the Preferred Shares into Class A common shares at a ratio of 40 Class A shares for each Preferred Share converted, valuing the Quattro Class A common shares received on conversion at a deemed price of $2.50 per share.

The proposed share issuance is subject to the approval of the TSX Venture Exchange


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 571,000 shares and 350,000 warrants of Fairmont Resources Inc., 1,162,500 shares of NTG Clarity Networks Inc. and 168,000 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.

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