Quarterhill Inc T.QTRH

What is happening?!? SP falling? Please explain!

[IPGutcsi]

Someone please explain what is happening? I don't understand the NR and I'm a bit confused as to why the SP is falling? I have been out "sick" last few days. Please explain to this old guy!

[barneyj44]

Share price falling , who knows what's going on. Maybe short positions are increasing. Hopefully the dust settles soon and we can see where we're heading.

[Capharnaum]

If I had access to purchase the convertible debentures (which I probably don't unless my brokerage has a deal with RJ, I'll have to check), I would entertain selling my shares and buying the convertible debentures. I'm guessing we're seeing some of that today, along with the weak hands selling into any form of downwards pressure.

[Justhalffull]

You cannot buy the convertible debentures now. RJ will first have to price them, then file a prospectus with the OSC outlining details of the offer. If approved, this is distributed to prospective investors, and the underwriter can begin selling the issue.

[Justhalffull]

They issued a $50,000,000 bought deal financing of convertible debentures at 6% convertible at $3.80 If converted that would be 12% dilution, and interest costs will be $3,000,000 per year. With no firm indication as to what the money will purchase, market is hesitant, thus small sell off.

[mrmoribund]

This kind of thing is not uncommon. People are selling the shares to buy the convertible. It surprises me that the shares are getting hit this much given the large premium on the conversion (at $3.80). I would much rather own the common at these levels. It may be that some hedge funds are getting involved where they buy the debenture and SHORT the stock. We'll get a sense of the degree to

[Capharnaum]

I don't think a hedge fund would bother due to the usually low transaction volume and lower market cap. So far, 680 000 shares have changed hands, for a value of around $2M. That's fairly small for a hedge fund. The convertible debentures represent around 13M shares at conversion price. If 20% of the buyers sell common shares to buy the debenture, then that would add a pressure of 2.6M of

[IPGutcsi]

Everyone who responded! Thank you...  you answers have reassured my conviction in regard to the positive outlook for SP of QTRH over the medium term (6m-1y). No predictions on SP but this was the original long term 3-5 yr horizon I set for my investment in QTRH, which is coming to a close by next year...