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Quarterhill Inc T.QTRH

Alternate Symbol(s):  QTRHF | T.QTRH.DB

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.


TSX:QTRH - Post by User

Post by shareholders1on Oct 24, 2021 7:38pm
469 Views
Post# 34042855

Another picture - $50m 6% Debentures vs $50m common shares

Another picture - $50m 6% Debentures vs $50m common sharesPerhaps this has already been discussued, but may be not, based on the last few posts.

The difference in cost/ dlution is not that large after adjusting for the 6% interest paid. If you were CEO, what would you rather have on the BS?  $50 more debt or $50m more equity? 

One sobering possible reason for QTRH's  debenture choice is that raising equity any where near $2.80 (or at say a 10 to 15% discount) was simply not doable. Perhaps even if new common shares were sold at say $2.40  to 2.50, RJ was unwilling to do a deal, or at least do a bought deal.

If this guess is correct, then others' guesses that instutions want QTRH shares but simply cannot find sellers/ supply is wrong.

Debt on the other hand is a different story. 6% yield with some protections for investors bring in many types of buyers/ RJ clients.

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