Quinsam Capital Corporation
Climate Impact & Sustainability Data (2019, 2022)
Reporting Period: 2019
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Poor operating results from some cannabis issuers.
- Regulatory scandal with a cannabis issuer.
- Decline in investor appetite for risk in the cannabis sector.
- Health and safety concerns on vaping-related products.
- Tax loss selling.
- High supply of new security issuances by cannabis issuers.
- COVID-19 pandemic causing market volatility, decreased valuations, and limited access to capital.
Mitigation Strategies
- Cautious approach in overseeing investment portfolio.
- Realizing profits where possible and freeing up capital for new investments.
- Considering investments outside the cannabis sector.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: IFRS
Third-party Assurance: MNP LLP
Reporting Period: 2022
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Volatility in Canadian capital markets due to rising interest rates, the war in Ukraine, inflation fears, recession fears, changing commodity prices, and the impact of the COVID-19 pandemic.
- Uncertainty in the cannabis market conditions.
- Credit risk on receivables, leading to an allowance for expected credit losses (ECL) of $1,973,433 in 2022.
- Concentration risk in the investment portfolio, with cannabis-related investments accounting for approximately 49% of the investments portion.
Mitigation Strategies
- Cautious management approach to investments, with new investments of less than $0.1 million in Q4 2022.
- Gradual reduction of positions in existing cannabis investments and diversification into other sectors.
- Regular review of industry holdings and portfolio rebalancing.
- Recording an allowance for ECL on interest accrued on certain convertible debentures and loan investments.
- Diversification across investments from different industries.