RE:Valuation & NCIB Rekor shareholders punished them for the STS acquisition.
I think Quarterhill shareholders will punish them to raise 6% yield on debentures to retire 2.6% yielding stock, that management then issues to themselves in the form of RSUs and options
The shelf prospectus sits there waiting to dilute shareholders. And when the current management owns so few shares it is a much higher risk. Management is incented to get bigger and demand higher salaries and bonuses to oversee a bigger business (not a more profitable one).
And a big deal will create more noise and confusion in the results and make it impossible to see how bad IRD and ETC are performing. Seems like a clever solution.
The best use of cash is severance. They need to shut down the corporate structure and shut down WiLan.
Now if the employees want to take WiLan private and avoid the severance that would be a good deal for both parties. But there is no way Parolin and friends will find affordable debt equity to support the deal. There is probably a vendor take back debt deal that could be worked out.
That won't unfortunately cut the ties to the patent business and there will still be exposure to the patent business in the form of debt vs. Equity.
None of these things will be viewed as positive.
Welcome to the sub $2.00 liquidation. Some funds will have to start selling into a no bid situation. Happens every time like clockwork with QTRH.