time to start a position?
QUIS entered a definitive stock purchase deal with Fulcrum IT Partners to sell its subsidiary LedgerPay which includes PayIQ. On top of stock consideration, QUIS could receive up to $18M in contingent cash considerations based on certain financial thresholds for PayIQ. The decision to divest PayIQ looks good as QUIS’ CEO stated that focus will shift to growing core business areas. The divestiture also reduces QUIS’ capital allocation annually by $12M. We will need more time to see if gains are effectively recognized from this, but it is a positive development and helps aid QUIS’ cost reduction initiatives. QUIS is still a very small company with a market cap of only $120.14M, and still a lot of debt, making it higher risk. Recent quarterly results show QUIS is operating at a net loss and saw revenues decline year-over-year.