Quarterhill Inc T.QTRH

Cash situation issue is worse than feared

[150pershare]

67 million cash is all that is left

Big news.   30 million of debt is now "current" meaning has to be paid in 12 months.  Must have breached a covenant.  

They keep stretching account payables.  37 million of cash after the current debt payment is made.  

Equity raise.  Dividend cut.  And need to cut $20 million of annual costs to survive.

[moneyguy87]

Uh...............or they sell off the patent portion of the business and end up with a cash infusion. but that can't happen because someone here said that it is impossible to sell patent portfolios currently. Uh........but BB just did..........

[junglejames]

If QTRH can do no better than BB with the Wilan sale, then I expect the cash up-front will be limited especially as future cash is paid out of profits and we know how lumpy that is with Wilan.  To grow the ITS component there will now likely have to be an(other) equity raise (unlikely convertible debentures). Of course the SP is near at a 52 week low.  Sale of the entire show really

[Fortuna]

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[Jimmycash]

The canery in the coal mine is the other 50M of current debt as pay in the next 12 months thats on their books. I believe they are back in compliance with bank on long term debt. So 67M in bank 50M owed this year plus portion of long term debt ITS lost 27M last year so if Wilan does not have another Apple like year and say....breaks even. Company is in a world of hurt. Sell Wilan?? lol, thats the

[150pershare]

Read page 20 of MD&A.  They disclosed they already blew another $13M of cash and are left with $54 million.   They are running out of cash.  They are running out of time.  And they have Gilberry in the saddle who in his last role as CEO drove Lendified into bankruptcy.