RE:RE:New Press Release - Quisitive Announces Sale of PayiQSorry but that’s not cash you see; those are the tissues I used to wipe my tears upon learning of the continued value erosion. It sounds like we must wait a few years before we see any cash; “On the third anniversary of the effective date of the Transaction, the Consideration Shares shall be automatically converted into common shares of Fulcrum Payments with a value equal to US$1,000 per share…or…Quisitive shall have the right to require Fulcrum to purchase all or a portion of the Consideration Shares for a purchase price equal to US$1,000 per share, for aggregate consideration of up to US$27 million.”
Based on annual capital allocation of $12M one might surmise that over the last 3 years (maybe more?) QUIS may have allocated $36M to develop PayiQ therefore, I’m not feeling the luv on this deal (and you still need to apply a CoC for the wait which brings it down to ~$23M). After issuing 400M shares since inception with little to show for it not sure there was anybody left to capitalize this so something had to go, I’ll give them credit for being creative. I am hoping to hear from our dissenting shareholder group as they will have a much better understanding of what just went down then I do. TTFN