RE:RE:RE:RE:CIBC shows no mercy. And cuts downside target to… $1.10 A sale is only one of many alternatives under consideration. Read what is in the latest MD&A.
Any alternative that doesn't yield over $130-150M valuation as a sale will lead to much further analyst cuts. Especially any alternative that doesn't result in an outright sale as that that would put the business near worthless and indicate there is no buyer for it.
WiLan has only chaff left. Skippen himself said it at the Apple trial. The Crown Jewels expired. And the partner patents, WiLan only gets a 50% interest. A 150 million price target is the equivalent of 60k+ / patent given the fractional ownership. Blackberry couldn't close a transaction at $20k/patent and that process has been ongoing for two years.
Strategic Review of WiLAN
The Company is conducting a strategic review of WiLAN and has hired Stout as its financial advisor. Stout's IP industry expertise includes structuring numerous IP transactions between technology and licensing companies such as WiLAN as well as the strategic review of licensing programs and large patent portfolio transactions for leading technology companies. Strategic alternatives to be considered may include changes to the corporate structure of WiLAN, the acquisition or disposition of assets, a going private transaction, joint ventures, the sale of WiLAN and alternative operating models, among other potential alternatives. There can be no assurance that this strategic review process will result in the completion of any transaction or other alternative. A special committee of the Board, working closely with management, is overseeing this strategic review.