Quarterhill Inc T.QTRH

Bid at $1.68

[Staydotcalm]

Let's keep adding to the $1.68 bid if you can!

[Staydotcalm]

As soon as I posted, the offering fell to 1.63. What a joke. Who ever it is, is reading this bullboard.

[Maxmoe]

I wouldn't say impossible, but improbable that anyone would react to anything posted on any social media website least of all an anonymous "bullboard" by hitting the bids on a very small cap Canadian stock. But as long as we are certain the company is worth much more than this, we just keep buying this undervalued stock. It's obvious to me there is no real short position on this

[ChiChi3]

Hi Maxmoe.  I agree that the shorts are most likely tied to the debentures but I disagree that they will just 'disappear' once the debentures mature.  Assuming that the debentures are settled with a conversion, and I doubt it would given the conversion price is north of $3 a share, then the only way to cover the shorts is to buy shares in the open market (or arrange a large

[Maxmoe]

The bondholders May very well start unwinding their shorts well ahead of the maturity Oct 2026. Keep in mind these positions are put on into a hedge fund or whatever as a "pair" trade. The fund is long the bond and short the stock simultaneously. If this were unwound at today's price level, the conversion value of the debentures would be significantly less than the face value of the

[ChiChi3]

Thanks for you thoughtful comments Maxmoe but I don't think your analysis of what needs to be done to unwind the pair trade is capturing what needs to be done.  At maturity, the debenture holders will get their face value of the bonds but they will also have to cover their short positions and buy shares- presumably in the market.  That's the only way they can lock in their

[Maxmoe]

Okay chi, I'll stop trying4 to explain it. We'll see shortly (pun intended). The offsetting pair trade is locked in. There is no pressure to unwind it. It will self destruct at maturity. The only monkey wrench into the works I can think of would be Qtrh buying back the bonds early in the market and retiring them which seems highly unlikely I've the premium required. Oops, sounds like

[cabbieJBJ]

Maxmoe, I believe the premium is only in place until 30-SEP-2025.  Does that change your calulus?

[ChiChi3]

Just reading the Underwriting agreement.  I assume you are talking about Quarterhill's ability to redeem the bonds prior to the Oct 31st maturity?  If so, the stock price has to be at least 125% of the conversion price or $4.75.  I'd be very happy if we get to these levels by then but I'm pretty doubtful. Maxmoe, I guess we'll have to agree to disagree on the short

[cabbieJBJ]

Chi, the premium only applies to the period 01-NOV-2024 to 31-OCT-2025.  After that, until maturity on 31-OCT-2026, there is no premium.  Only QTRH can trigger redemption prior to maturity.   For the benefit of the board, this is the pertinent section of the Underwriting Agreement filed on Sedar on 22-OCT-2021: On and after October 31, 2024 and prior to October 31, 2025

[ChiChi3]

Hi Cabbie.  My point was that they can't redeem before Oct 31 2025 because the share price isn't above the conversion price times 1.25 or $4.75. So until Oct 2025 this is a moot point.  I don't even understand what you and Maxmoe are referring t when you use the word 'premium'.  There is no use of this word in the excerpt you posted. chi

[Maxmoe]

Yes indeed. They can cover by delivering securities convertible into the required number of shares. The pair trade put on years ago was done at a time underlying common was much higher, but that's irrelevant today. If they bought converts that were , and still are, convertible into say 1,000,000 shares, whatever that face value, market value was at the time for the bonds ... is also irrelevant

[Socrates1]

Because the official exert from the document posted by Cabbie did not explain clearly enough the process..... ehhh .........you may have missed that post .......

[cabbieJBJ]

Please add your points necessary for clarity Socrates. Again, my understanding of the debentures terms: Redemption - cash or shares.  Conversion price is $3.80/share Maturity date - 31-OCT-2026 Redemption - always at QTRH's option.  When exercised, redemtion is at face value, plus accrued and unpaid interest Redemption is closed prior to 31-OCT-2024 From 31

[Socrates1]

That was a sarcastically agree.  Sorry me bad... that's how I thought it was as well.... now lets get this new leg up going..... ehhhhh

[ChiChi3]

Lots of shares traded today.  My guess is that the short positions are starting to be covered, whether Maxmoe believes it or not. If results are strong tomorrow, look for even more covering....and a push above $2/share. chi

[cabbieJBJ]

Let's not get our shorts in a knot Chi.  It's just as likley that some (larger) investors anticipate positive results tomorrow and want to get in beforehand.  See you in the morning! GLTA.

[ChiChi3]

HA....good one Cabbie.  Yup, fingers crossed for tomorrow morning!  Any positive adjusted EBITA should be viewed as a positive by the market.  I think anything above $2-3 million gets us over $2/share in short order.... chi

[cabbieJBJ]

Maxmoe asks: can someone explain as clearly and logically as possible whether the trumpocalypse is good or bad or just immaterial to this business  A very good question.  As many posters as possible should jump in.  It would not be a surprise if this question is posed on tomorrow’s call.  I don't personally view Trump's election as a trumpocalypse...just so that is out

[cabbieJBJ]

Biden is speaking now about the road ahead for the 90 days. He specifically mentioned ~$2B of infrastructure money to be spent/granted. 

[Maxmoe]

No change to calculus, algebra, or trigonometry . Not sure about the kids and that new math. Don't forget ...The premium is what they have to pay if they force an early redemption. They are free to buy in the market at any time at any price a seller will offer. 

[Socrates01]

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