Wednesday, September 2nd18.2°C
27215
27125

Wi-LAN exploring new business model, possible sale as part of strategic review

OTTAWA - Wi-LAN Inc. (TSX:WIN) says it's exploring a broad range of strategic alternatives in light of its current low share price, including a possible sale of the company, a new dividend policy or other business models.

The Ottawa-based company, which generates revenue by licensing technology patents, says it doesn't believe current market prices reflect the true value of Wi-LAN's stock.

Wi-LAN's announcement comes less than a week after its shares plunged nearly 23 per cent in one day following an unfavourable jury decision in a legal battle with Apple Inc. (Nasdaq:AAPL).

The company attempted to downplay the impact of the decision, saying it affected only one patent that expires within months and wouldn't have a bearing on other licensing agreements.

Despite Wi-LAN's assurances, its stock fell 92 cents to $3.16 in extremely heavy trading on Oct. 24, a day after the ruling.

The shares gained 18 cents after the strategic review was announced Wednesday, trading at $3.28 at midday, but remained down about 20 per cent from before the Apple ruling was announced.

On Wednesday, Wi-LAN said the company "strongly believes in its current business strategy but does not believe that its current share price accurately reflects its strong balance sheet, the value of its signed licence agreements, its business prospects or the residual value of its broad intellectual property portfolio."

"Strategic alternatives to be considered may include changes to the company's dividend policy or other forms of return of capital to shareholders, the acquisition or disposition of assets, joint ventures, the sale of the company, alternative operating models or continuing with the current business plan, among other potential alternatives."

The Canadian Press


Read more Business News

27126


Recent Trending




Today's Market
S&P TSX13545.25+63.35
S&P CDNX550.05+2.08
DJIA16351.38+293.03
Nasdaq4749.98+113.87
S&P 5001948.86+35.01
CDN Dollar0.7536-0.0001
Gold1130.40-2.10
Oil45.89-0.36
Lumber235.10+1.10
Natural Gas2.647-0.001

 
Okanagan Companies
Pacific Safety0.22+0.05
Knighthawk0.010.00
QHR Technologies Inc1.19+0.01
Cantex0.04-0.01
Anavex Life Sciences1.25-0.07
Metalex Ventures0.055+0.005
Russel Metals20.87-0.34
Copper Mountain Mining0.61-0.01
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.62+0.12

 



27613

FEATURED Property
235843013-1985 Burtch Rd
3 bedrooms 2 baths
$245,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



26376




Member of BC Press Council


26708