Quinsam Capital Corporation

Good morning, everyone. Welcome to the Quinsam Q4 Conference Call.

We'd like to keep this relatively informal, mostly an opportunity for questions. Fourth quarter, we made a small profit, had a positive impact on net asset value, which is still at that point, approximately $0.10.

We've also said that we've closed the books more or less on Q1. We'll probably be reporting that in a week or 2.

And we've told the market that, that quarter, we expect to see NAV grow again. Based on the performance of the [ public equity ] during the quarter.

I did want to focus on a couple of interesting developments over the last number of months. One is an investment that we made early in this quarter, Deep Sea Minerals.

The investment is still under 4-month hold. We put $100,000 in at $0.40, and it's currently trading over $2.

So that's about [ $0.05 ] contributed to [ NAV ] at this point. Although, obviously, when the hold comes off, they may be selling and it's possible that the stock won't stay here, but it's a nice situation for the time being.

We've also seen some really nice performance from Nevada Organic Phosphate. It was at $0.25 yesterday.

We made a number of investments, all at a combination of $0.05 and occasionally [ $0.03 ]. So that has been a really nice performer, particularly since year-end.

The other unusual one I want to highlight is Peninsula. We've owned Peninsula for quite some time, a number of years.

It's a U.S. residential rental business.

They own a couple of thousand single-family homes, mostly in New York State and Cleveland and a little bit in some other areas. They were looking at doing an RTO late last year.

Trump started making comments about corporate ownership of single-family homes, and that kind of wreck that situation at that point, but they're now going ahead with a direct listing. In the first quarter, they needed some money quickly to close an acquisition and pay for the listing costs.

So Quinsam and a couple of other parties agreed to basically from a practical standpoint, it would be backstopping a rights issue at a very, very low bargain price. And we ended up adding 250,000 of Peninsula just recently at $0.50.

Which is the same price it raised money at the very beginning 3 or 4 years ago. But now we're looking at a situation where the NAV is about $1.90, and they're proposing to go out with a 3% dividend yield on that $1.90 in the coming weeks.

So very hard to say with the direct listing, what something will trade at. But when you've got a dividend of close to $0.06 and $1.90 of NAV and lots of comparables to this situation, we think that it's going to trade at a very significant premium to where we put that most recent money in.

Anyway, so at this point, the markets are behaving in a very good way. We're seeing NAV grow.

We've been continuing to look for an interesting RTO transaction. There is one investment we've made in the current quarter that has the potential to be that transaction.

It's early days, though. It's a company called Bon Intelligence.

They are a company that is in the electronic media business, putting screens in major retail chain stores and doing a revenue share on advertising with them. They did a funding, and they are planning to list in the next number of months.

We participated in the funding to get to know them better. And I would say it's a possibility that something happens with them for some or potentially all of our assets, I'd say, more likely some of our assets.

I couldn't assess the probability at this point of something happening. It's probably still a minority chance, but it is something that is a possibility.

I guess at this point, I would ask if anyone has any questions they would like to ask. No questions?

Okay. Well, if there are no questions, thank you very much for attending and we'll talk to you next quarter.

Please feel free to reach out at any point. Thanks a lot.

Bye-bye.