RE:There goes Apple... Congrats to all longs!
The sale process for WiLan can now go ahead.
You get an agreement without any specifics to the financial implications to Quarterhill. Was it for $10Million to enable the sale process? Was it the same as Samsung for $35 million? what does "specific consideration payable" mean?
How much does McKool Smith get now that it is a settlement? How much does Samsung get back if they settled for a song to enable the sale of WiLan.
I never said I was short. I am not.
But, this isn't an announcement that any analyst will raise a target against without any financial specifics. It doesn't say a global agreement. It doesn't say a multi year license.
And the "specific consideration payable" under the agreement could imply that Quarterhill gets paid at the conclusion of the sale of WiLan. This language was never used in a prior announcement.
It could just be an announcement to clear the way for the eventual sale of WiLan. Or it could help to stop the cash burn as battling Apple in Germany, Canada and the US was going to be extremely expensive in 2022. And that would make the sale process challenging to disentangle $10-$20 million in legal fees.