Reverse Mergers & Low Float Plays

[Potse]

QGSI(.048)...debt settlement, revenue growth......

I picked up some sub-5 cent shares of QGSI today. Historically, QGSI has had some nice tradeable moves from this price area, and I am looking to see if history repeats itself. There is potentially considerable risk here because the company has been trying to raise $2M over the last couple of months or so. Depending on the terms/conditions of that capital raise this 5-cent price level could turn out to look pretty attractive or pretty bad. I'm crossing my fingers that it will not be some type of toxic financing. My guess/hunch is that the financing might get priced somewhere in that 5-10 cent price area, so I am willing to take a chance here and bought some shares.

The most recent comment about the financing was in the early December press release........

TORONTO and NEW YORK, Dec. 01, 2023 (GLOBE NEWSWIRE) -- QuantGate Systems Inc. (OTCQB: QGSI) (the "QuantGate" or "Company"), a leading innovator in Artificial Intelligence ("AI"), Machine Learning ("ML") and SaaS-based Fintech solutions, today provides an important update on its financing announced on October 24, 2023, and the progress made amidst a turbulent market landscape.

Since the announcement of its recent financing, QuantGate Systems Inc. has made significant strides in its operations and strategic initiatives. Despite the challenging environment characterized by problematic market conditions, including difficulties in listings, financing, and IPOs, the company has maintained its commitment to growth and innovation.

Allan Bezanson, CEO of QuantGate Systems Inc., states: "Despite the headwinds in the market, we are steadfast in our pursuit of excellence and delivering value to our stakeholders. We are committed to the current financing but might have to adjust certain terms and pricing of the offering dictated by market conditions. There are no certainties that the financing will be completed. However, we are in advanced discussions with numerous individuals and entities. As such, we are providing guidance based on disclosures in our most recent financial statements."

Primary reason(s) I took a position now is because of what was disclosed in the quarterly report filed yesterday.....

1) I think for the first time in company history the revenue showed a significant amount of quarter-to-quarter revenue growth -- from $3K in the previous quarter to $169K in the quarter ended November 30, 2023. So maybe the company is starting to see a little bit of traction building for its products.

2) The most interesting thing in the filing was a large debt settlement done at 10 cents after the quarter ended. That represented more than 30% of QGSI's total debt. It doesn't specify exactly what debt was settled (convertibles or just general corporate debt). Maybe this debt reduction is a precursor to an announcement/progress on the financing package........

Subsequent to November 30, 2023, $1,365,016 of debt has been agreed to be settled with the issuance of 13,650,110 common
shares.