Quisitive Technology Solutions Inc V.QUIS

Assessment of Financing

[retiredcf]

What is your take on the recent financing by QUIS and what are sales residuals? Is the company on stronger footing now?

The $6M financing helps, certainly, and one investor is backstopping $5M of the deal. The $0.35 price though was a discount to recent trading and down 70% from the price of the last financing in 2021. But debt of $78M has worried investors so this will alleviate some solvency concerns. The stock is down 53% this year, and there is dilution from the deal. Part of the deal is to buy back some sales residuals, and this will increase margins. Typically, sales residuals refers to money made over and above any initial sale, with little additional work, that typically gets paid out to sales reps on a predetermined schedule. Kind of like an ongoing bonus to sales reps on an initial sale. But of course this hurts margins. (5iResearch)

[StockscoutX]

This deal helps but not in a big way. QUIS is like a turtle, it will get where it's suppose to get one small step at a time like this deal and others like it in the past. I believe that there's virtually no support from the investment houses. On paper from one QR to the next, numbers keep improving. So what's holding the SP from moving north? Beats me. Also, I bet this stock isn't

[retiredcf]

Perhaps the average investor is unaware but there is quite a bit of coverage from investment firms. These  include: Cormark (target: $1.15), BNS/Raymond James/Canaccord ($1.25), Desjardins ($1.40),  Eight Capital ($1.50), and Echelon ($1.65). That said, the recent financing obviously annoyed a lot of people so they will be in the dog house until they can release some significantly

[StockscoutX]

This dog has legs. It's just a question of when it will run and it will run hard. It's probably a coincidence but has my last post scared a few shareholders into dumping?