QIS Update #4 2014 - February 7th 2014
Included in this update:
- Manado Gold announces private placement offering
- NTG Clarity Networks to re-file two sets of financial statements
- Quinsam Capital announces $5million non-brokered financing
- Virtutone Networks announces $9.2 million in sales for January 2014
The next dates and locations for The Small-Cap Conference are set for April 16, 2014 in Calgary and May 7, 2014 in Vancouver. We are currently booking companies for presentation times and we are always looking for new and exciting companies. If you have a company that may want to participate please contact us as soon as possible to reserve the best speaking times.
Registration is now open and investors can sign up to attend the event at www.smallcapconference.ca. Alternatively, you can email us to sign up at firstname.lastname@example.org. As always, it is free to attend for investors.
Please feel free to email us anytime at email@example.com or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.
Manado Gold Corp. (MDO:TSX-V)
Current Price: $0.06 (coverage commenced Dec. 6/13 - $0.065)
Manado Gold Corp. has announced that it plans to offer, on a private placement basis, up to 4,000,000 units at a price of $0.05 per unit for gross proceeds of $200,000. Each unit will consist of one common share of the company and one non-transferable share purchase warrant, with each warrant entitling the holder to purchase one additional share at a price of $0.06 per share for a period of three years following the closing date of the offering.
The proceeds of the offering will be used for mineral exploration and working capital purposes. Closing of the proposed offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.
QIS Capital: If anyone would like to participate in this proposed financing and is an accredited investor, please contact us for further information and the subscription agreement.
NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.40 (coverage commenced Feb. 4/10 - $0.045)
NTG Clarity Networks Inc. has announced that following a review by staff of the Ontario Securities Commission (OSC) in connection with the filing of the company’s annual consolidated financial statements, notes and related Management’s Discussion and Analysis for the year ended December 31, 2012 and the interim consolidated financial statements, notes and related Management’s Discussion and Analysis, the OSC has determined that company is in default of its continuous disclosure requirements under the Securities Act (Ontario).
1. For NTG’s Audited 2012 financial statements, the following will be corrected:
- Expand/enhance the company’s revenue recognition policy
- Correct the label in Trade and Other Receivables, Note 12, on page 46 to read “Trade receivables after impairment” instead of Related Party.
- Update Financial Risk Management Objectives and Policies, Note 21, under Liquidity Risk, on page 55 to remove reference to “operating losses in the current year” and “…to reach profitable levels of operation”.
- Update the MD&A to enhance analysis and comparisons and other requirements of 51-102F1.
These changes have no effect on figures previously reported in the 2012 financial statements (the Audited Consolidated Statement of Financial Position, the Audited Consolidated Statements of Changes in Shareholders’ Equity, the Audited Statement of Comprehensive Income, or the Audited Consolidated Statement of Cash Flows).
2. For NTG’s Interim Q2 2013 financial statements, the following will be corrected:
- revenue recognition policy should be consistent with that of the revised annual financial statements for the year ended December 31, 2012 (above)
- Condensed Consolidated Interim Statement of Cash Flow – remove long term debt from Operation Activities and correct decrease in long term debt under Financing for three and six months.
- Under Operating Segments, Note 6, on page 35, for the Six Months ended June 30, 2013, replace the table with the correct 6 month figures. Three months was mistakenly duplicated.
- Under Related Party Disclosures, Note 19, Key Management Compensation, on page 50 – correct June 30, 2013 and June30, 2012 figures that were mistakenly reversed.
- Update the MD&A to enhance analysis and comparisons and other requirements of 51-102F1.
These changes have no effect on figures previously reported in the Interim Q2 2013 (the Condensed Consolidated Interim Statement of Financial Position, the Condensed Consolidated Interim Statement of Comprehensive Income, or the Condensed Consolidated Interim Statement of Changes in Shareholders’ Equity). For Cash Flow; Net Cash From Operations changes to $202,578 from $85,911 (3 months and $615,558 from $474,892 (for 6 months); Cash From Financing changes to $12,667 from $129,334 (3 months and ($71,031) from ($69,634) (for 6 months); Cash From Investing changes to ($453,227) from ($69,634) (for 6 months).
The company will be making the necessary updates and anticipates that revised Financial Statements will be filed by March 28, 2013 in order to remedy the Default.
QIS Capital: While nobody likes financial statement revisions, management is working diligently to correct any errors and does not expect any material changes or complications. The revisions, as announced in the press release, will have no effect on the actual financial numbers reported previously.
Quinsam Capital Corp. (QCA:CSE)
Current Price: $0.11
In QIS Update #25 from October 31, 2013 (see: www.smallcaps.ca/updates-104-QIS-Update-#25) we talked about Quinsam Capital and mentioned that we’d provide some follow-up coverage on the company, which has just issued the following news release.
Quinsam Capital Corporation has announced that it will proceed with a best efforts non-brokered private placement financing of up to 50 million common shares of Quinsam at a price of $0.10 per share for gross proceeds of up to $5,000,000. The proceeds of the Offering will be used for investment activities and working capital purposes.
In connection with this placement, Quinsam may pay an 8% cash finder’s fee to certain eligible arm’s length finders. 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). There can be no assurance that the private placement will be completed as proposed. Subject to the receipt of the conditional approval of the Canadian Stock Exchange, closing is expected on or about February 28, 2014.
The CEO of Quinsam, Roger Dent, has indicated his intention to participate as a buyer in the Offering.
Quinsam would also like to take this opportunity to update investors on the company’s recent investment performance.
Since embarking on a new strategy with a new team in November 2013, the corporation has invested an aggregate of approximately $651,000. As at the end of January, the unaudited aggregate value of these investments (including the net proceeds of investments already sold) is approximately $767,000.
As at the end of January 2014, the unaudited total value of the Quinsam’s cash and equity investments has increased to approximately $913,000.
Roger Dent stated, We are very pleased with our investments to date as a number of our investee companies have performed well. We are particularly pleased with the progress by Enterprise Group, Inc. Bri-chem Corp., Questor Technology Inc. and Grande West Transportation Group Inc. We continue to be optimistic about market conditions in our areas of focus and we would like to raise funds to position ourselves in more companies that we believe are undervalued.
QIS Capital: For those interested in participating in this Quinsam financing, please contact us at firstname.lastname@example.org or (250) 377-1182. Quinsam has posted tremendous success in the past two months since it started acquiring shares in small-cap fundamental companies. Quinsam posted a gain of 18% in those 2 months while increasing its investment funds by over $116,000.
Virtutone Networks Inc. (VFX:TSX-V)
Current Price: $0.48 (coverage commenced Sep. 9/11 - $0.10)
Virtutone Networks Inc. has announced that the company has generated over $9.2 million in revenue for the month of January.
$9.2 Million in revenue for the month of January, is a great way to finish off our fiscal year said Jason Allen, Chief Executive Officer of Virtutone. With the financing we just closed off, we are set for a record breaking month in February.
QIS Capital: Virtutone continues to set new monthly sales records. The company reported October revenues of $3.95 million, November sales of $7.2 million, December revenues of $8.45 million and January sales of $9.2 million. Virtutone is now at an annualized revenue pace of over $110 million. Sales for the fourth quarter ended January 31, 2014 should be just shy of $25 million according to what has been released.
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 119,000 shares of Manado Cold Corp ., 1,168,500 shares of NTG Clarity Networks Inc., 1,010,000 shares of Quinsam Capital Corporation, and 620,000 shares and 212,500 warrants 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 - 2014 QIS Capital Corporation.