RE:RE:RE:RE:The stagflation age for ITS is here I no am sure you are a good person. You probably give people second and third and even fourth chances. But to be successful in investing, you have to realize that to rise to these positions in these companies that they are not good people.
Then you realize that it all depends on the people and people make the same mistakes over and over again.
When you see the chair of the Board has never put a single dollar of his own money into the company you should be very concerned. Has only taken compensation in the form of free options.
And hope that Lendified doesn't happen to Quarterhill. Did you see the announcement today? They announced a $10M share issuance on a $2M market cap company. No idea how they will issue shares at 0.005 cents per share.
I know no one thinks they will issue equity here. But, why do you think that? It is happening everywhere at these small companies. The debt markets are virtually closed.
And when they have a very small cash position net of debt, they need capital to justify having such a huge corporate Center. They are spending $14M per quarter on SG&A or $56M annually to oversee $108M of cash after Viziya payment (but that will decline to $53M after Cramer completes his project by the end of 2023). That is a 50% annual expense ratio on the cash or 25% annual expense ratio on the market cap.
That is more expensive than the most expensive hedge funds!
Don't forget about the $150M shelf prospectus. That is a huge risk for shareholder dilution here. Otherwise, they'd be buying stock if it so cheap.
Instead they are issuing press releases with no information to try and put a bottom on the stock.
You always see this before equity issuance in these small firms.