Quarterhill Inc T.QTRH

Re convvion and reception price

[Justhalffull]

Previous discussions suggested that QTRH could redeem the debentures at 95% of their value.  In reading the full prospectus, I disagree.  At the Share Payment Option paragraph on page 2, the 95% option refers to the ability QTRH to satisfy the redemption or conversion by delivering shares instead of cash, by dividing the principle amount of. the debentures by 95% of the current market price.  The referenced description of current mArket  price refers to the share price, not the debenture price. So dividing the debenture principle by 95% of the share price would result in a PREMIUM payment, not a DISCOUNT.

[shareholders1]

The point I was trying to make, perhaps not clearly, was that debenture holders would not necessarily get their cash back on maturity. Getting cash back would only be expected where the shares have not grown in value. The share payment option, at 95%, would really only apply where the shares have not appreciated, meaning debenture holders would not wish convert. In such instance they  could

[Justhalffull]

Would not matter.   Same thing happens if shares were only worth 3.00      $3.00 * 95% is 2.85      1000/2.85 is 350.8772 shares So you have 350.8772 shares worth 3.00 each or $1052.63.  If shares dropped too $2.00, then 2.00*95% is 1.90   1000/1.90 is 526.3158 shares 526.5158 shares at 2.00 is $%1052.63

[Justhalffull]

Not sure that type of forced conversion at a loss would even be legal, but in any event I doubt the regulators would ever authorize such an issue.