Quarterhill Inc T.QTRH

Preliminary Short Form Prospectus

[onlygame]

https://www.stockwatch.com/News/Sedardoc/4944106.pdf

[cabbieJBJ]

What is this onlygame?  It's a members only link.

[onlygame]

Quarterhill files preliminary short-form prospectus 2021-10-04 14:33 ET - News Release An anonymous director reports QUARTERHILL ANNOUNCES THE FILING OF A PRELIMINARY BASE SHELF PROSPECTUS Quarterhill Inc. has filed and obtained a receipt for a preliminary short-form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada other than the

[SixMileLake777]

Noooooooooooooooooooooo They are not going out and diluting are they??? Noooooooooooooooooooooooo Skid

[whaler83]

geez.  $200M This makes me nervous.

[cabbieJBJ]

Whaler, does it make you nervous at say, $7? Skid is going to have to hold his breath for 25 months.  Ouch!

[v_guerriero]

Something BIG in the works.   You need a shelf prospectus to sell debt.  QTRH looking to secure debt at low interest rates before rates rise. This would allow them to achieve the $400M goal without any other capital.  I didn't like their term loan structure with HSBC as it was a floating rate loan. Imagine this, they settle Motorola and Apple, have $200M+ of cash and

[birder]

Is there a chance QTRH be participating in the BB patents sale?

[onlygame]

Is there a chance QTRH be participating in the BB patents sale? Please NO ! Let's focus on business that has current consistent sales, growth potential and profit that will add to the income statement immediately. Too much pain to wait at least another 1-2 yrs for BB patents to hopefully pay.

[cabbieJBJ]

birder, if they are they need to close the Apple license tout de suite! You may have read that a price for the BB deal has been agreed to.  You may have also read that the deal is more akin to selling a business that selling patents.  Apparently Chen is losing patience and has indicated that if the deal is not finalized by fiscal year end in March 2022, BB will have to move onto

[wilander]

Ugh. Please NO.

[birder]

Thanks, I had read that article and it came back to mind when I saw the $200M QTRH news. 

[whaler83]

if they use it at $7 then no not as much (less share dilution). i guess its great that they will be ready if and when something comes up. ITS seems to be a fast growing and consolodating space.

[onlygame]

Didn't they originally say it would be financed with cash and debt? and the debt financing would be offset by the acquired company profitability. I don't recall, ... dilution. Did I miss that? Is this a change of heart?

[Socrates1]

Probably much bigger and more $$$ expensive toy.......

[cabbieJBJ]

Your recollection is the same as mine onlygame. ETC was $150M.  The acquisition deal was $75M cash and $75M debt (the HCBC Agreement). The just announced Shelf Prospectus covers both debt and equity.  I jumped on the equity side and may have confused readers; v_g rightly pointed out the debt option.  A fixed rate debt offering could be used to retire the floating rate

[v_guerriero]

$200M of fixed rate debt, Eliminate $75 floating rate loan with HSBC. Motorola signing and additional $125M of debt to enable acquisition of another ETC sized firm.  With ETC winning its fair share of backlog, and another similarly sized acquisition you could be looking at a $400-$500M ITS firm in 2002 with $50-60M in EBITDA.  

[cabbieJBJ]

Just got the news release from QTRH.  Lining up ducks for something potentially very big.  Release: https://finance.yahoo.com/news/quarterhill-announces-filing-preliminary-shelf-182500805.html If you have not read the lending deal with HSBC, you should.  There are prepayment and ratio covenants.  Interestingly, the deal is between HSBC and Quarterhill ITS Inc.  The

[nozzpack]

The shorts have been onboard for just this reason....Keeping the share price within Prospectus range. It also explains the lack of a NR on the recent settlement. This is an excellent time to accumulate.