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Quarterhill Inc T.QTRH

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

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.


TSX:QTRH - Post by User

Comment by Maxmoeon Oct 25, 2023 4:48pm
127 Views
Post# 35700939

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

RE:RE:RE:RE:RE:RE:RE:RE:Short Report.Doesn't really matter but there is no premium paid for the redemption. They can redeem at par. $100 per debenture. The bond last traded at 85. It's trading as if it was not convertible, ie at its straight debt value. Like a first year finance course chart the bond, in theory, will trade like a bond until the underlying stock approaches the conversion price. They could redeem it a year earlier at October 2024 but it seems highly improbable to happen due to the terms of that earliest redemption date. At the time the debenture was sold, the stock was about $2.82 so the conversion price of $3.80 was in-line for a small cap "growth" stock. The premium was 35%. So if I read the terms correctly, the stock has to trade at a 25% premium to the conversion price of $3.80 per share, or $4.75 per share to trigger the early "forced" conversion. Yes I own the stock after buying it recently at $1.40, but no, I'm not expecting the debenture to be "forced" to convert to common shares at $3.80 because the $4.75 trigger allows the company the option of doing so. It's entirely probable the company will start redeeming at par starting in October 2025 because the stock will be stuck trading at less than the conversion price of $3.80. My target for my "fun" portfolio of small caps is 100% return up side in 12 months. That may be a stretch for QTRH, but I'll give it time to implement the new biz plan. Good luck to all. 
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