Quarterhill Inc T.QTRH

Trevor Rose's Insights - Don't Buy

[Possibleidiot01]

Just an opinion that's out there.

DON'T BUY

Quarterhill Inc(QTRH-T)

30/06/2023

 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Earlier in the year, QTRH's subsidiary, Quarterhill ITS, had fallen outside of certain covenant ratios (covenants required to maintain credit with the bank), but this updated credit agreement will secure a covenant relief period till the end of the year. Essentially, it helps the company maintain its debt levels and it provides the company with more working room to attempt to grow its operations and bring those ratios back in line with its covenants. Without the company being in line with its covenants, additional debt cannot be taken on, and this hinders future growth opportunities, thus a relief program gives the company more time to bring those ratios in line.

[cabbieJBJ]

Let's see how the next two quarters unfold. There's enough cash on hand to retire the debt today. Cash burn will be a pivotal metric.  Do you know what covenants were breached possiibleidiot?

[Possibleidiot01]

Who was easy to find , with its existing syndicate of bank lenders led by HSBC Bank Canada. Not an accountant but it might be the same issue mentioned here in  Quarterhill Inc. Management’s Discussion and Analysis For the three months and year ended December 31, 2022 and 2021 March 21, 2023 The Company was not in compliance with the Fixed Charge Coverage Ratio and Senior Leverage Ratio

[cabbieJBJ]

The loan agreement is on SEDAR. I'll check it out over the long weekend, just out of curiosity.  You might want to scan it as well. Back to baseball 

[braedenthi]

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