VANCOUVER, Nov. 3, 2017 /CNW/ - Rockshield Capital Corp. (CSE:RKS), (US:CRUOF), (FSE:6BC) ("Rockshield" or the "Company") is pleased to provide an update on the Company's progress after a 300% increase in NAV year over year, including information with respect to the Company's future plans.
Rockshield is an actively managed venture capital fund and merchant bank, focused on small cap high growth companies as we see this market segment with the greatest risk/reward potential.
We are fundamentally bottom up investors and sector agnostic as we look to invest in equity and equity linked instruments of companies that meet the Rockshield philosophy of quality management, exponential growth potential and inefficiently priced valuations. Rockshield's management team has been investing in small cap companies for over the past 20 years and performs extensive due diligence as it looks to build a portfolio of opportunistic and eclectic investments with the aim of generating superior long-term returns while managing risks. Leveraging the vast professional network and experience of the management team, Rockshield has early access to public and private deal and reviews hundreds of deals a year selecting only this with the best potential return. We hold long term high conviction beliefs in sub-sectors of the economy, resulting in a high concentration of position in various sectors we believe will collectively outperform over the long term.
The Company has maintained minimum operating costs with the combined management and Board overheard of approximately $160,000 per annum collectively. The Company management and Board are aligned with shareholders as they incentivized through their equity holdings and stock options rather than fees.
As at September 17, 2017 the fair value of the companies' cash and investments sits at $0.33 a share representing an increase of approximately 300% year over year. The current NAV represent an 83% premium over the current share price of $0.18. The Company has no debt and uses no leverage.
INVESTMENT PORTFOLIO HIGHLIGHTS:
Helius Medical (TSX: HSM)
Helius Medical Technologies is a Newtown, PA-based medical device company developing and commercializing the PoNS Therapy platform, a powerful wearable direct current stimulation technology to treat movement and gait disorders in patients with traumatic brain injury (TBI) and chronic neurological disease. The first targeted application of the PoNS is for balance disorder tied to mild to moderate TBI. The US neurostimulation device market is forecast to grow to $4 billion in 2018.
Rockshield has been a long term investor in Helius and is one of the largest shareholders of the Company. The average entry price of our investment is at $0.78 share representing a 478% return as of Sept 20, 2017. The company is looking to list on the Nasdaq market to allow the demand of US institutions to participate.
The Green Organic Dutchman Holdings Ltd. (Private)
The Green Organic Dutchman Holdings Ltd ("TGOD") has a funded capacity of 14,000KG's. Situated on 175 acres of land, this gives TGOD one of the largest licensed land parcels in Canada. To date, the Company has raised $41.5 million dollars and has over 2,400 shareholders.
TGOD has partnered with Eaton Corp., the US$36 billion global power management company, with Eaton providing research and optimization that will allow TGOD to have some of the lowest electricity input costs in the business. The Company has also engaged Larssen Ltd, the world's most respected and technologically advanced greenhouse engineers.
The consortium of architecture, construction and power management are leading the two projects:
1. Ontario - 14,000kg fully funded at a power rate of $0.045 per kWh
2. Quebec - 102,000kg funding at a power rate of $0.035 per kWh
Rockshield provided initial seed funding 12 months ago, with the most recent TGOD financing of $36MM completed at $1.65 representing a significant increase in our investment. TGOD are currently private and will be listing on the TSE in 1Q 2018.
Cognitivity is revolutionizing mental healthcare with its sensitive, reliable and scalable platform for the detection of cognitive impairment, especially the early stage detection of dementia. Cognetivity's platform uses the latest principles in Neuroscience coupled with Artificial Intelligence (IA) to allow clinicians to screen for early stage cognitive impairment using the Integrated Cognitive Assessment test (ICA). Originating from research carried out at the University of Cambridge and protected by international patents, the ICA uses patients' responses to carefully controlled visual stimuli to detect changes in cognitive ability. The test is fast, does not require expert supervision and it is distributed as a Software as a Medical Device (SaMD) service running on iOS devices, and, after a number of successful pilot studies, the company is carrying out large scale clinical trials ready take the ICA into global markets. Dementia is the biggest healthcare challenge of the 21st century according to the WHO, costing the global economy an estimated $1 trillion in 2018, and currently 1 in 2 patients with dementia do not receive a diagnosis at all.
Rockshield provided growth funding 2 months ago at $0.25 per share.
Plus Products (Private)
Plus Products manufactures cannabis infused edibles for the California medical cannabis market.
The company has introduced fast-acting, infused edible products, positioned for a healthy and active lifestyle audience seeking a premium cannabis experience, without the sugar, gluten and calories found in competing edible products. The company has recently completed the build out of their 12,000 sq. ft. automated Adelanto facility and now expects to grow revenue to US$1-1.5MM/month. "Since launching Plus Gummies this spring, we have been overwhelmed with requests to continue to broaden our product line," says Jake Heimark, CEO and cofounder. "We're excited to explore new opportunities with the same emphasis on innovation, consistency and testing that we have applied to Plus Gum and Plus Gummies."
Rockshield provided growth funding 5 months ago at US$0.96 per share, and the company intends to list on the CSE in 1Q 2018.
DMG Blockchain Solutions (Private)
DMG Blockchain Solutions is a full service blockchain and cryptocurrency company that manages, operates and develops end-to-end digital solutions to monetize the blockchain ecosystem.
Rockshield has invested in one of the few diversified bitcoin/blockchain companies. DMG is strategically positioned in Japan – the world's largest (50% of of global bitcoin trading) DMG is launching the 2nd state-of-the-art blockchain transaction processing (bitcoin mining) hosting facility in Western Canada. It intends to list in Jan 2018.
Emblem (TSX-V: EMC)
Emblem is a licensed producer of Medical Cannabis in Canada, led by a team of former Healthcare & Pharma Executives who have built & run multi-billion dollar companies. Their brand-new Paris, Ontario facility was custom-designed and purpose-built specifically to cultivate and cure cannabis for medicinal use; and has a fully funded expansion plan to grow to 17,000KG of annual production. Emblem plans to begin installing production lines in December 2017 that will allow it to produce capsules containing cannabis oils and begin selling oil filled capsules in the second quarter of 2018. Capsules will be an improved dosage format as each capsule will contain a measured dose and therefore allow physicians and patients to titrate the medication Emblem intends to participate in the development of such advanced pharmaceutical dosage formats. In pursuit of this strategy, Emblem entered into the CL Agreement with Canntab to collaborate on the preclinical formulation, clinical development, regulatory approval, manufacturing and commercialization of a Canntab developed patent pending oral sustained release formulation of cannabinoids. The Corporation expects to be selling, subject to Health Canada approval, sustained release pills or capsules in early 2019.
Rockshield provided multiple rounds of financing to Emblem with a weighted average cost of $0.66 per share, representing 168% return as of Sept 20, 2017.
The Company continues to see many investment opportunities which we believe can add value to the portfolio and reward our shareholders. At the moment we feel it best to continue to utilize cash to make investments in quality undervalued opportunities. The Company is currently trading at a substantial discount to net asset value and accordingly we may in the future consider purchasing our common shares by way of an approved normal course issuer bid. We may in the future also consider a dividend or a special distribution to shareholders to further unlock value.
The Company is also reviewing opportunities to unlock the value of our private holdings potentially by way of a spin out to a public market vehicle or IPO. Company CEO, David Doherty said, "We are extremely pleased with the return from our current portfolio of public holdings. In addition, we believe there is significant upside potential in our private holdings as many will soon to be publicly listed investments that we have valued at cost for NAV purposes."
ROCKSHIELD CAPITAL CORP.
Rockshield Capital is a publicly traded venture capital fund under the symbol RKS on the Canadian Securities Exchange. Rockhsield Capital offers investors a chance to gain exposure to early stage seed investment in companies they typically would not get access to. Leveraging the vast professional network and experience of the management Rockshield reviews hundreds of deals a year and chooses those which have the best return potential under the current market environment.
For further information regarding Rockshield, see Rockshield's disclosure documents on SEDAR at www.sedar.com.
The Canadian Securities Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Rockshield Capital
For further information: Rockshield Capital Corp.: David Doherty, President and CEO, firstname.lastname@example.org