RE:Keeping an eye on WilanCabbie, tell me if I have this right.
My understanding is that the final buyout of Quarterhill's 10% is restricted to a range of $13-16 million. There may be some other performance payments as well but they're not huge.
My point here . . . well . . . let me put it this way.
Suppose, hypothetically, Wilan achieved a settlement where they received, say, $10 billion.
Would this mean Quarterhill would get 10% of that? A billion?
If I understand correctly, the answer is NO.
What they would get is $16 million. Before making any distribution of the $10 billion to shareholders, the bosses at Wilan would exercise what is, essentially, a $16 million put.
Now if the Wilan bosses distributed the $10 billion without first remembering to get rid of Quarterhill by paying them the $16 million, etc., then, yes, Quarterhill would get 10% of that.
But I think it's unlikely the Wilan bosses would commit such an oversight.
Is this right?