RE:RE:RE:RE:RE:RE:RE:RE:V-G has lost his memory?? WiLan is generously worth a 7X multiple on an annualized 6M EBITDA on running a capital light partner owned patent consignment store. This is what Cannacord says.
The corporate team is -10M a year, and will be -11M a year once the CFO is hired. Brett Kidd is double the cost of Paul Hill so the corporate inflation continues to chew into the company value.
Whoever buys WiLan will also have to assume the patent finance obligations on the balance sheet.
The problem is that the people overseeing the WiLan sale (Skippen and Gilberry) will NEVER accept the market reality for the value of WiLan. They are too emotionally connected to it. They could have sold it 12 months ago, but they were too late. Hence they are looking at a range of options, including buying MORE patents!
And this is the bad timing that this company has. They paniced into buying ETC at all time high valuations in ITS. Then they turfed the CEO that encouraged them to do it. And they waited too long to sell WiLan. Now the market is cooling on acquisitions. These poor decisions cost shareholders a lot of money.
Luckily, Apple was willing to paper over some of their mistakes as WiLan settled for a nice discount. $50M cash in the bank after fighting over 10 years. They probably just broke even on Apple after fighting them over 10 years.
Blackerry still hasn't announced the close of the IP sale. The deal is broken off if they don't complete the deal by the end of this week.
If Catapult can't find the equity to back the deal, it will be like a nuclear device being detonated in the patent monetization marketplace.
What will WiLan be worth if Blackberry can't sell its patent horde for $17k/patent?
And if VirnetX has $170million in cash and its market cap is $100 million... and they have another $500M jury awarded verdict against Apple, how would someone value WiLan? The market assumes that the jury verdict will be reversed and that VHC will burn through $70 million fighting Apple. This is the state of the patent market.
As some jacka$$ says, do your homework.