Reverse Mergers & Low Float Plays

[Potse]

HLTT/QMEI...additional developments......

HLTT(.275): Sales of the wound care product (Amniobind) began in the month of September, with the company recording $776K in revenue. The Q3 filed last week contains this somewhat interesting statement......

We expect HWC’s wound care business to become profitable during the fourth quarter of 2022, which will alleviate some of the cash flow burden of that business. That revenue, occurring shortly after our acquisition of the wound care business, will likely be the exception to the norm for our portfolio companies. Our business plan contemplates that, to attract exciting additions to our portfolio, we will offer most the several million dollars of financing that is necessary to bring a medical technology to a stage where its sponsor can function independently. Since our ambition is to sustain a portfolio of such enterprises, our near term capital requirements (near term being the two to three years before we can anticipate initial returns on most of our investments) will be tens of millions of dollars.

QMEI(.64): Besra Gold is doing a $3.4+M rights offering (United States dollars). QMEI is underwriting the offering and will fully participate in its share of the offering. More than likely other shareholders will decide to participate, but if they don't QMEI is prepared to do the entire offering itself. Currently QMEI owns more than 17.5% of Besra. If no other shareholders participate in the rights offering, QMEI would own more than 38% of the company (page 8 of the rights offering presentation)......

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02603945-6A1124620?access_token=83ff96335c2d45a094df02a206a39ff4

According to a November 25 press release, Besra and QMEI are also discussing a production agreement in which QMEI will provide up to $300M in financial support to Besra......

The Board of Besra Gold Inc (ASX: BEZ) (ARBN 141 335 686) (“Besra” or “Company”) is pleased to advise the market that it is in advanced discussions with its substantial shareholder, Quantum Metals Recovery Inc (“QM”), pursuant to which it is proposed that QM will provide up to US$300 million in financial support, commencing as soon as CY2023, by way of a gold offtake purchase facility.

The proposed facility, if implemented, would enable Besra to advance exploration and development planning, and to expedite production at the Bau Gold Project in Sarawak, Malaysia. It is currently proposed that stream deliveries would be based on gold production from Bau, with Besra to receive 90% of the spot gold price for each ounce delivered subject to a monthly cap.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02603626-6A1124463?access_token=83ff96335c2d45a094df02a206a39ff4