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QIS Update #9 2015 - June 23rd 2015

Included in this update:

  • Dalmac Energy announces appointment to board of directors
  • Newlox Gold Ventures announces non-brokered private placement
  • NTG Clarity Networks signs $3.9 million contract, increases credit facility



For those who may be interested, QIS Capital has been posting regular weekly summaries to a thread on the discussion forum on the website. Each week we offer a recap of major news, market performance and we often add companies to watch that could be worth your time to perform some additional due diligence.

Weekly Update Thread:


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Dalmac Energy Inc. (DAL:TSX-V)
Current Price: $0.17 (coverage commenced Nov 15/11 - $0.37)


Dalmac Energy Inc. has announced appointment of Mr. David Olson to the board of directors of Dalmac.

Mr. Olson has over forty years of business experience including seventeen years as the Chief Financial Officer of one of Canada's largest oilfield services and transportation companies (a TSX listed company). During that time, the company did over forty acquisitions, completed two private debt placements and three equity issuances. Mr. Olson has also served as a director of a TSX Venture Exchange oilfield services company for five years and as a director of a Calgary based not-for-profit organization for 12 years.

Mr. Olson has been a Chartered Accountant since 1973, has a Bachelor of Arts (Economics) and received his ICD.D designation in 2011 from the Institute of Corporate Directors.


Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.06 (coverage commenced March 31/14 - $0.05)


Newlox Gold Ventures Corp. has announced a private placement of 2,000,000 units at $0.05 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of Newlox for a period of up to two years from the date of closing for $0.10. A finder’s fee of C$4,000 was paid.

Among the participants in this private placement is Mr. Roger Dent who is CEO of Quinsam Capital Corp., a public company (CSE: QCA). After giving effect to the purchase of units on May 29, 2015, Roger Dent owns, in the aggregate, 1,170,000 Newlox shares, representing approximately 2.4% of the Newlox shares outstanding. In addition to Mr. Dent’s personal holdings, Quinsam Capital owns $132,830 of Newlox convertible debentures, 500,000 Newlox shares, and 3,000,000 Newlox warrants.

Quinsam Capital Corp. and Roger Dent may be considered to be joint actors. The joint actors beneficially own, directly or indirectly, or exercise control or direction over, an aggregate of 1,670,000 Newlox Shares. On a partially diluted basis, assuming the exercise of all warrants and convertible debentures, the joint actors have the potential to own or control an aggregate of 6,990,300 Newlox shares, which would represent 12.9% of the shares on a partially diluted basis.

“We think that Newlox represents a very interesting investment opportunity” said Roger Dent, CEO of Quinsam Capital Corp.


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 the company has signed a $3.9 million contract with one of the top global management consulting and outsourcing companies. NTG will supply technical, development and support resources to enable the customer to deliver on its objectives in a timely and cost effective manner. Work on this contract has already started and is to be completed by the end of December 2015.

“We are very pleased with the signing of this contract for a number of reasons.” said Ashraf Zaghloul, NTG Clarity’s Chairman and CEO. “This is a major new customer and it introduces our products and services to this multi-national corporation. This contract helps confirm that our strategy of increasing revenue through new customer acquisitions continues to gain traction. Additionally, this contract reinforces that NTG Clarity continues to provide high quality resources at very competitive prices. We expect that all revenues and profits from this contract will be included in this year’s fiscal financial statements.”



NTG Clarity Networks Inc. has announced that it has completed an agreement to renew and increase its existing $3.5 million credit facility and $1.2 million bonding facility with RBC Royal Bank of Canada, Knowledge Based Industries Banking Group - Toronto.

The new facility adds financing to support NTG’s organic growth, new opportunities and ongoing projects.

The agreement includes:

  • $3 million operating line available for general working capital purposes to fund continued growth;
  • $3 million pre-shipping revolving facility to support pre-shipping costs associated with exports;
  • $3 million letter of guarantee facility to support bid and performance and payment guarantees for export contracts.


“This increased facility and the positive results from 2014 and Q1 2015, allows NTG to aggressively pursue new opportunities to achieve our growth plan for the coming year” said Ashraf Zaghloul, NTG Clarity Chairman and CEO.


Facilities are supported by Export Development Canada (EDC).

QIS Capital: NTG Clarity has successfully met every target management has made over the past several years. This significant contract is another step toward the $20 million in revenues forecast by the company for 2015. The increase to the credit facility adds further credibility to NTG Clarity and its recent growth, as RBC would have performed several criteria valuations to justify the over 150% increase to the credit facility. Congratulation to management for the continued growth in the company. NTG Clarity is trading at just 5 times earnings assuming $0.08 annualized eps. The company also has no long-term debt and has positive working capital of $0.19 per share. Adjusted for working capital, NTG Clarity would be trading at only 2.6X earnings.


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 171,000 shares of Dalmac Energy Inc., 3,433,000 shares and 2,000,000 warrants of Newlox Gold Ventures Corp., and 1,253,000 shares and 100,000 options of NTG Clarity 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 - 2015 QIS Capital Corporation.

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