Quinsam Capital (QCA) Q3 2024 earnings summary

Executive summary

• Achieved a profitable third quarter with net income of $1.2 million ($0.013 per share), up from $0.1 million ($0.001 per share) in Q3 2023, mainly driven by a tripling in California Nanotechnologies' value and Givex's privatization.

• Net assets stood at approximately $0.14 per share as of September 30, 2024.

• Added over CAD 1 million to liquid assets and implemented cost reductions exceeding CAD 100,000, including board and executive compensation cuts.

• Liquid investments, including cash and public equities, totaled about $0.06 per share.

• Maintained strong liquidity to capitalize on future significant transactions.

Financial highlights

• California Nanotechnologies' share price rose from around CAD 0.50 to approximately CAD 1.50 during Q3, more than tripling in value.

• Net income rose to $1.2 million in Q3 2024 from $0.1 million in Q3 2023.

• Over 1.45 million shares repurchased in Q3 2024 under the issuer bid.

• Givex privatization bid led to a positive impact on results.

• Negative performance from Above Food, a private holding, due to delayed listing and cooling alternative food markets.

Outlook and guidance

• Optimistic about long-term prospects for California Nanotechnologies, despite a recent price dip entering Q4.

• Expecting cost savings to be more fully realized in Q4 and beyond.

• Anticipate increased liquidity from private holdings as several are progressing toward public listings or refinancing.

• No plans to sell California Nanotechnologies in 2024; 2025 decisions will depend on company outlook and liquidity needs.

• Management continues to seek value-creating transactions, anticipating a patient approach due to few new listings.