Business
Quarterhill Announces the Sale of Wi-LAN Inc.
Quarterhill Announces the Sale of Wi-LAN Inc. Canada NewsWire TORONTO ,...
About this update from Quarterhill Inc
[{"type":"text","content":"\n \n \n \n Quarterhill Announces the Sale of Wi-LAN Inc.\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n June 15, 2023\n \n \n /CNW/ - Quarterhill Inc. (TSX: QTRH) (\"Quarterhill\" or the \"Company\") announced that today it has completed the sale of all of the shares of Wi-LAN Inc. (\"WiLAN\") to an arm's length purchaser for gross proceeds of up to approximately\n \n $71.4 million\n \n subject to certain adjustments, including working capital adjustments. As part of the consideration, after this transaction Quarterhill will own 10% of WiLAN and Owlpoint IP Opportunities JVF LP, a joint venture between Arena Investors, LP (\"Arena Investors\") and Owlpoint Capital Management, LLC (\"Owlpoint\"), will, directly or indirectly, own the other 90%. No current or prior Quarterhill insiders are investors in WiLAN. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.\n \n \n In addition to the 10% ownership stake in WiLAN, the consideration for this transaction will consist of approximately\n \n $48.0 million\n \n in cash, approximately\n \n $8.0 million\n \n as an earn out and approximately\n \n $15.4 million\n \n pursuant to an unsecured promissory note, which earn out and note are payable on WiLAN achieving certain revenue milestones. Quarterhill's 10% ownership stake can be repurchased by WiLAN for between approximately\n \n $13.0 million\n \n and\n \n $16.0 million\n \n subject to WiLAN meeting certain revenue milestones. Quarterhill will be entitled to receive its pro rata portion of any dividend distributions made by WiLAN.\n \n \n \"We are pleased to have completed this transaction, which delivers significant growth capital to Quarterhill's balance sheet and provides an excellent home for this specialized and storied business to prosper as a private company,\" said\n \n John Gillberry\n \n , Interim CEO of Quarterhill. \"This sale was the logical conclusion of WiLAN's strategic review that started at the beginning of 2022 and enables Quarter...