QGSI...position status.....
Regarding the private message I received asking about my current thoughts on QGSI.....
This could end up being a very bad investment decision on my part, but I sold my position in QGSI. I was not comfortable with this proposed merger with CoinAnalyst, and I was growing increasingly uncomfortable about the lack of transparency on a couple of major press releases (corporate developments). Neither QGSI nor CoinAnalyst would respond to emails, so at this point I am just more comfortable moving my money into other opportunities.
Regarding the CoinAnalyst merger:
1) It looks like the burn rate of the combined company will be fairly high.
2) The exact details of how this will be implemented have not been disclosed yet, but it looks like this could turn out to be a bit of a messy or complicated situation. I have zero interest in owning a stock that trades on the Canadian exchange. As far as I am aware TD Ameritrade does not allow trading of foreign stocks, so I don't want to deal with the headaches of trying to get my position moved to a platform that allows me to trade it. Maybe QGSI will set up a "F" equivalent stock for United States shareholders, but I don't know how the mechanics of that would work out.
If anything about this merger were to make it more difficult (and/or more expensive) to trade my shares, I just don't think I would be interested in dealing with it.
Lack of transparency on corporate developments:
I am a generally patient investor and realize that things might not always materialize exactly how the company expects. But I do have some limits on what I find acceptable or not. The company issued two press releases in the last year or so disclosing very major transactions (a $1M investment from a third party -- 8/25/2021, and the CEO acquiring 90M shares -- 7/6/2022). Subsequent quarterly filings from QGSI do not appear to show any evidence these transactions actually occurred. The first press release was a red flag for me, but I was willing to give the company some leeway on it. This second press release was the final straw for me. The lack of transparency on these two items does not sit well with me.
Part of me wonders if instead of the CEO actually acquiring those 90M shares, maybe the sisters who owned those shares are just going to return those shares to treasury and the company will cancel them. If the share numbers and percentages disclosed in the merger press release are accurate, the only way this merger can be completed is if QGSI cancels around 90M shares. Otherwise the percentages (QGSI = 97%, CoinAnalyst = 3%) simply do not work.
No matter what the situation is, QGSI needs to provide better transparency on issues where filings seem to directly contradict information the company has issued in press releases.
