Quarterhill Inc T.QTRH

Alternate Symbol(s): QTRHF | T.QTRH.DB

Technology Communication Equipment

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.

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Quarterhill Inc > Short Report.

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Comment by cabbieJBJon Oct 25, 2023 12:34pm

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Post# 35700346

RE:RE:RE:RE:RE:RE:RE:Short Report.

Thanks Maxmoe. I hadn't factored that in...definitely a consideration, as the share price could explode if the company delivers strong profits over the next 12 months.

To remind the board, the take up on the debentures was $57.5M at a $3.80 conversion price, representing 15.13M possible shares on conversion. The debentures pay 6% interest, payable semi-annually and expire on October 31/26. Six percent is a very, very favorable rate today. The debentures are closed until October 31/24. QTRH can trigger early redemption, at par, between October 31/24 and October 31/25 provided the share price is equal to or greater than $4.75 for a continuous 20-day period. After October 31/25 through to maturity on October 31/26, QTRH may redeem the debentures, at par, regardless of the trading price on its shares.

I didn't see the premium you are referring to in the Undewriting Agreement. My read is that the early redemption OPTION rests exclusively with QTRH and redemption is at par, although the trading price of QTRH shares must be >$4.75 in order for QTRH to force conversion. Is that the 25% premium you are talking about?

Most investors will be very happy if QTRH's share price is above $4.75 by Q4/24.

From the Undewriting Agreement:

On and after October 31, 2024 and prior to October 31, 2025, the Initial Debentures will be redeemable at the option of the Corporation, in whole or in part, on not more than 60 days’ and not less than 30 days’ prior notice at a redemption price equal to par plus accrued and unpaid interest, provided that the weighted average trading price of the Common Shares on the Toronto Stock Exchange (the “TSX”) for the twenty (20) consecutive trading days ending five (5) trading days prior to the date on which notice of redemption is given is not less than 125% of the Conversion Price. On or after October 31, 2025 and prior to the Maturity Date, the Initial Debentures will be redeemable at the option of the Corporation on not more than 60 days’ and not less than 30 days’ prior notice at a price equal to their principal amount plus accrued and unpaid interest.