Quarterhill Inc QTRHF

Short

[Maxmoe]

I believe I posted this before, but it appears to be repeat worthy. The short position appeared at the same time as the convertible debenture. It's not a coincidence. It's very common practice to buy the debenture and short the underlying stock to eliminate any downside risk from the equity only. It doesn't help if they go broke, but it covers the risk of the stock dropping in half. There may very well be a small short position, but it's immaterial. Just like it was pre October 2021 when the debs were issued. Shorts sent from a few 100k to 2.4 million in dec 2021. Since then it's been in that range. Some activity from those hedge funds arbing in and out but it's still 2.4 million. There are not 2.4 million shares betting the stock will go down because they hate the stock. It's hedges. The bonds mature in October 2026.

[Maxmoe]

Btw, Cibc used to, still has? Have a fund for investors that invested solely in convertibles. They may or may not have hedged the equity risk as the fund restrictions allowed. They almost always hedged. It was, still is? The largest fund of this type available in Canada. Lots of funds will include a convert component, but this fund was 100% converts. It's never been a great equity fund for