Queen’s Road Capital Investment Ltd. (QRC) is a leading financier to the global resource sector. The company is a resource-focused investment company, making investments in privately held and publicly traded resource companies. The company acquires and hold securities for long-term capital appreciation, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.
The global resource sector has suffered significantly over the past decade as traditional financing pools have dried up. Many high-quality resource projects are not being advanced and many producing assets are behind on life-extending investment projects due to lack of investment in the sector.
QRC seeks to fill this void by providing resource companies much needed capital at attractive terms which will generate returns for our shareholders.
QRC invests its capital in resource companies and projects on a global basis, with an emphasis on convertible structures, such as convertible debentures. The focus will be on issuers with assets in production or near production in safe jurisdictions.
Why Convertible Securities?
- Convertible securities pay an interest coupon which will, in part, be returned to shareholders through dividends (the dividend yield will provide downside protection on the share price).
- Convertible securities are debt instruments and, as such, provide an additional layer of protection through the collateral/security over the assets of the investee companies.
- The conversion element of the securities ensures that there is no limit to the upside return to QRC and its shareholders; if an investee’s share price goes up, QRC shares in 100% of the upside above the conversion price.
- The terms of the convertible securities also provide QRC and its shareholders with additional special protections on a case-by-case basis (change of control provisions, establishment fees, warrants…)