QuantGate Systems Inc. (QGSI)

[Potse]

Reply to private message regarding position status.....

I did not get a chance to read through the Q1 report until Friday afternoon, and sent the company an email late Friday afternoon expressing my concern that the report provides no information about the $1 million financing that was completed during the quarter. I was planning to purchase one final block for trading purposes after the price broke under the 13-cent level, but decided to wait until the company provides an explanation/clarification on this matter. I still have not received any response from the company at the time I am writing this.

Regarding the private message I received inquiring about my position status: I have not sold any of my position yet since I made the above post. I did not receive any response to my email. So, I really don't know if that financing was actually completed or abandoned.

The only thing I have seen/heard regarding financing and QGSI recently is the audio interview that new ceo Govin Misir did around the middle of December. According to Govin QGSI's capital raises have been done "internally", which suggests to me that the $1M was not completed because the press release clearly stated that the $1M financing was from an arms-length strategic investor......

"We've raised capital internally. It's funded by us. We have not entered the market very much for any capital."

https://wallstreetanalyzer.com/2021/12/16/quantgate-systems-inc-otcqb-qgsi/

The next quarterly report should be out in around 2 weeks or so. If there is no information/explanation in that report regarding that financing, my mood toward this investment probably will not be very good. Again, maybe I am jumping the gun here and there is some perfectly acceptable/logical explanation. But if that particular financing was never completed, I think the company had an obligation to let its investors know.

I am definitely planning to sell a significant percentage of my position during calendar 2022. But the idea of selling at current prices is not something I find particularly appealing. My guess is there will be far better opportunities to sell at some point this year.

Govin Misir has a very successful background, so I would like to give him an opportunity to show what he can do now that he is officially in management control of the company. He mentioned in the interview that he has been bringing in new operational people to the company (design, development, marketing). It sounds like he is also bringing in additional advisors and board members. At the time of the interview QGSI was priced around 8 cents. Govin described QGSI as being "underpriced".