Queen's Road Capital Investment Ltd. · TSX:QRC
Queen's Road Capital Investment — Investor Presentation (January 2020)
18 slides from Queen's Road Capital Investment's investor presentation, January 2020
Slide 1: Queen's Road Capital Limited (QRC-TSXV)
QUEEN’S ROAD CAPITAL LIMITED (QRC-TSXV) LEADING FINANCIER TO THE GLOBAL RESOURCE SECTOR
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT IMPORTANT: PLEASE READ THE FOLLOWING BEFORE CONTINUING. THE INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN PREPARED BY LITHION ENERGY CORP. (“LNC” OR THE “COMPANY”). THE INFORMATION CONTAINED IN THIS DOCUMENT (A) IS PROVIDED AS AT THE DATE HEREOF AND IS SUBJECT TO CHANGE WITHOU
Slide 3: About QRC
ABOUT QRC • QUEEN’S ROAD CAPITAL LTD TO BECOME A LEADING SOURCE OF INVESTMENT CAPITAL TO RESOURCE COMPANIES & PROJECTS THROUGHOUT THE WORLD • QRC’s investment focus will be resource companies/projects in safe jurisdictions in advanced development stage or in production using structures which, where
Slide 4: Landscape for Metals & Mining Issuers
LANDSCAPE FOR METALS & MINING ISSUERS Deflated Market Values Equity Financing Opportunities Dried Up S&P TSX Global Mining Index Equity Raised by TSX/TSXV Metals & Performance (2011-19) Mining Issuers (C$ billions/ # of Transactions) 140 $14.0B 160 120 100 $10.5 B 120 80 $7.0 B 80 60 40 $3.5 B 40 20
Slide 5: Why Focus on Convertible Securities: Yield
WHY FOCUS ON CONVERTIBLE SECURITIES • CONVERTIBLE SECURITIES WILL PAY A QUARTERLY/SEMI-ANNUAL INTEREST COUPON TO QRC WHICH WILL, IN PART, BE RETURNED TO SHAREHOLDERS THROUGH A QUARTERLY/SEMI-ANNUAL DIVIDEND • ANTICIPATED DIVIDEND YIELD ON INVESTMENT BASE: 4-5% YIELD • QRC WILL STRIVE TO MAXIMIZE ITS
Slide 6: Why Focus on Convertible Securities: Unlimited Upside
WHY FOCUS ON CONVERTIBLE SECURITIES • THE CONVERSION ELEMENT OF THE SECURITIES ENSURE THAT THERE IS NO LIMIT TO THE UPSIDE RETURN TO QRC – IF AN INVESTEE’S SHARE PRICE GOES UP, WE SHARE IN 100% OF THE UPSIDE ABOVE THE CONVERSION PRICE; IF AN INVESTEE’S SHARE PRICES GOES DOWN, THE UNLIMITED DEBT OWED
Slide 7: QRC's Business Model
QRC’S BUSINESS MODEL QRC LTD INVESTORS (CAYMAN REGISTERED) INVESTEES (QRC:TSXV) Capital Investments (HK TAX RESIDENCE) Injections with a focus on convertible securities REVENUE: (a) Interest Coupon (b) Establishment Fees (c) Exercise of Warrants (d) Conversion of Loans COSTS: (a) Admin/Overhead (b)
Slide 8: QRC Financial Example
QRC FINANCIAL EXAMPLE $100M INVESTED $3M EST. FEES RETURN TO INVESTORS $7M INTEREST $5 INCOME m Base Dividend (from Annual Interest Coupon, paid quarterly) Stock Upside from Exercise of Warrants Stock Upside from Conversion of Loans
Slide 9: Valuation Parameters
VALUATION PARAMETERS • QRC’S VALUATION WILL BE BASED ON A NUMBER OF PARAMETERS WITH UNLIMITED UPSIDE AND PROTECTION ON THE DOWNSIDE FROM THE DIVIDEND YIELD AND POSITION IN THE CAPITAL STRUCTURE INVESTMENT CAPITAL Floor Price (with a focus on convertible securities) INVESTMENT CAPITAL DIVIDEND (with
Slide 10: Leadership Team
LEADERSHIP TEAM WARREN GILMAN ALEX GRANGER TBD CHAIRMAN & CEO PRESIDENT CFO • Mining engineer • 10 years investment banking • [Will be appointed by May • 26 years at CIBC running at CIBC and Credit Suisse 2020] mining investment banking • 9 years as CEO of publicly in Canada, Australia and listed ju
Slide 11: Warren Gilman CEF Track Record
WARREN GILMAN CEF TRACK RECORD • WARREN GILMAN, A MINING ENGINEER, LEFT CIBC IN 2011 AFTER 26 YEARS WITH THE TITLE OF VICE CHAIRMAN AND HEAD OF ASIA PACIFIC RESPONSIBLE FOR ALL OF CIBC’S BUSINESS ACTIVITIES IN ASIA • JOINED CEF IN 2011 & LED IT FOR THE NEXT 8 YEARS • CEF IS OWNED 50% BY CIBC & 50% B
Slide 12: Board of Directors
BOARD OF DIRECTORS* WARREN GILMAN ALEX GRANGER JOHN ANDERSON MICHAEL COWIN EXECUTIVE EXECUTIVE INDEPENDENT INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR • Mining engineer • 10 years investment • Practicing Lawyer at • Principal, Corom • 26 years at CIBC banking at CIBC and Stikeman Elliott since F
Slide 13: Shareholding Structure
SHAREHOLDING STRUCTURE • QRC IS A TIGHTLY HELD COMPANY WITH ~75% OF THE SHARES IN THE HANDS OF THREE STRATEGIC INVESTORS AND DIRECTORS & OFFICERS; THE FLOAT IS ALSO HELD BY LONG-TERM AUSTRALIAN & CANADIAN RETAIL INVESTORS Jack Cowin • AS PART OF THE TRANSACTION THAT CREATED THE Float COMPANY, QRC RA
Slide 14: About Jack Cowin
ABOUT JACK COWIN • COROM PTY LTD. IS AN INVESTMENT VEHICLE OWNED AND CONTROLLED BY MR. JACK COWIN, A CANADIAN-AUSTRALIAN BUSINESSMAN AND PHILANTHROPIST • MR. COWIN IS ONE OF AUSTRALIA’S MOST SUCCESSFUL AND HIGHLY REGARDED ENTREPRENEURS • STARTING WITH A SINGLE KFC FRANCHISE IN 1969, HE BUILT COMPETI
Slide 15: About Andrew Forrest
ABOUT ANDREW FORREST • SUQADRON RESOURCES PTY LTD. IS AN INVESTMENT VEHICLE OWNED AND CONTROLLED BY MR. ANDREW FORREST, AN AUSTRALIAN BUSINESSMAN AND PHILANTHROPIST • MR. FORREST IS AUSTRALIA’S MOST ACTIVE PHILANTHROPIST AND ONE OF THE MOST EFFECTIVE LEADERS OF HIS GENERATION • HE IS THE FOUNDER AND
Slide 16: Capital Structure
CAPITAL STRUCTURE CURRENT BASIC SHARES OUTSTANDING: 143,636,898 OPTIONS OUTSTANDING MAY 2020 EXPIRY ($0.13) 1,000,000 JANUARY 2025 EXPIRY ($0.30) 11,000,000 PRO FORMA DILUTED SHARES OUTSTANDING: 155,636,898 MAJOR SHAREHOLDERS COROM PTY LTD (JACK COWIN) 24.4% SQUADRON RESOURCES PTY LTD (ANDREW FORRES
Slide 17: Share Price Performance
SHARE PRICE PERFORMANCE Share Price halt at $0.47; $0.50 Announcement of transformation from 700,000 SHARE PRICE $0.47 Lithion Energy to Queen’s Road Capital; 52-WEEK HIGH $0.47 Private Placement of 103,333,333 $0.45 52-WEEK LOW $0.05 shares at $0.30 MARKET CAP $67.5M 600,000 $0.40 500,000 $0.35 $0.
Slide 18: Queen's Road Capital Limited
QUEEN’S ROAD CAPITAL LIMITED THANK YOU
Queen's Road Capital — Investor Presentation (January 2020) on 6ix