Mr. Roger Dent reports

QUINSAM REPORTS Q1/2023 RESULTS

Quinsam Capital Corp. has released its first quarter 2023 results, with net income of $400,000 (nil per share, basic, and nil, fully diluted) versus a loss of $1.7-million (two cents per share, basic, and two cents, fully diluted) in Q1 2022. Investors can view the company's full financial statements on SEDAR.

"At March 31, 2023, we had net assets of approximately 15 cents per share outstanding," said Roger Dent, chief executive officer. "Our shares continue to trade at a very steep discount from [net asset value]."

After a very difficult year in 2022, Q1 2023 appears to be showing the beginning of a stabilization in small-capitalization markets. While enthusiasm remains muted, the environment appears more constructive than it was in 2022.

Value creation strategy

Quinsam shares have traded at a discount to NAV in recent years. In an effort to secure a valuation for its shares that is at NAV or perhaps at a premium to NAV, Quinsam recently announced that it is pursuing a strategy to attempt to realize its underlying economic value.

In current capital markets, capital is very scarce for small-cap companies. If Quinsam is able to convert its portfolio to liquid assets, Quinsam believes that it may be able to secure a valuation in excess of NAV as part of a merger or reverse takeover with a private company.

Accordingly, Quinsam continues efforts to exit its illiquid investments and look for transactions that have the potential to create significant shareholder value. Quinsam believes that it is prudent to exit its illiquid investments in a patient and careful way. Accordingly, this process will likely take in excess of one year. It is a goal to continue to try to increase NAV while this process is under way through investment in liquid vehicles.

Subsequent to quarter-end, one of the private investees, Above Food, announced its intention to go public later this year through a merger with a New York Stock Exchange company. It invested $300,000 in this company in a combination of shares and warrants. It currently carries this investment at a total value of approximately $25,000. While there is no certainty about the completion of its going-public transaction, it is targeting a valuation at a premium to its original cost.

The search for a value-creating transaction has begun. It anticipates that it may take some time to find a suitable, value-creating transaction. Further announcements will be made on the status of such steps, which are subject to all applicable shareholder and regulatory approvals.

Issuer bid

In Q1 2023, Quinsam acquired no shares pursuant to its issuer bid to acquire up to 4,916,605 shares that commenced on Sept. 6, 2022, and will terminate on Sept. 5, 2023. To date, the company has acquired 516,000 shares pursuant to this issuer bid.

Investor call

An investor call will be held at 9 a.m. Eastern Time on Wednesday, May 24, 2023, by Zoom with ID 889 6503 5727 and passcode 529165.

About Quinsam Capital Corp.

Quinsam is a merchant bank with a focus on small-cap investments, which it believes are undervalued. It does not invest on behalf of third parties or offer investment advice.

Generally, Quinsam does not believe that individual investments are material events. Quinsam may choose to announce certain investments once the company has finished buying its position because it feels that this information helps investors understand its decision-making process. Generally, Quinsam does not announce the sale of investments.

We seek Safe Harbor.