Page 1 of 14 May 27, 2020 Technology – Small Cap Rob Goff | 416-933-3351| [email protected]Pooja Sharma, B.Eng. (E&C), MFIN | 647.794.1922 | [email protected]Highlight: Shares ahead 51% over the past month and 280% YTD supported a review of our PT and rating. We are moving ahead our C$0.95 PT to C$1.40 looking for commercial contracts and strategic partnerships with LedgerPay as critical catalysts. We introduced QUIS to our Top Picks Portfolio for Q220 with the shares at C$0.41. We highlighted our baseline forecasts, PT, and the potential for LegderPay to be transformational. These considerations support moving our PT ahead to C$1.40. With our prior PT we had specifically stated that we were deliberately reserving room for further upside revisions given potential catalysts leveraging LedgerPay and its relationships with Microsoft (MSFT-Nasdaq, NR) and dunnhumby (Private). Financial Estimates: We expect Q1220 revenue/EBITDA at $11.0M/$1.1M ahead 175.0%/404.8% y/y and 104.0%/247.2% q/q, and EBITDA margin of 10.2% versus 5.6% a year ago and 6.0% a quarter ago. The Company reports May 28, 2020, after market followed by an earnings call on Friday 8:30 am. Given the current economic environment, with its year-end results issued April 30 th , the Company released preliminary Q120 guidance with revenue put at $10.9-11.1M and adjusted EBITDA at $1.0-1.2M compared to our previous forecasts of revenue/EBITDA at $10.1M/$1.4M. At that time, we increased our 2020/2021 revenue/EBITDA by $5.7M/$0.8M and $5.8M/$1.3M to $47.1M/$6.8M and $53.4M/$8.5M, respectively With respect to the Q120 preliminary guidance, were encouraged by the revenue outperformance while the modest EBITDA pressure was attributed to higher investment costs in LedgerPay where costs are expenses rather than capitalized. We continue to highlight that we look for further potential upside to our baseline assumptions as the Company signs additional LedgerPay and legacy cloud business contracts. LedgerPay: Global payment technology providers average 10.6x/8.7x 2020/21 revenues. We previously reflected a baseline valuation of 7.5x times the lower end of our baseline LedgerPay SaaS and license related revenue run-rate of $7.5-10.0M to derive a base value of $0.50- 0.70/shr – not an unachievable target where its first deal with REV19 represented $4-6M. We further noted the potential for LedgerPay to successfully sign a bank sponsor either exiting 2020 or in early 2021 and/or the potential for it to emerge as the default payment platform for Microsoft Azure and it could transform upside considerations. We feel these considerations support a valuation at 8x a revenue target of US$10M yielding a value of US$80M+ or ~$0.95/shr. We see additional upside noting the company’s reference to a top 20 grocer representing a potential US$30M revenue opportunity for LedgerPay. The alignment with both Microsoft and dunnhumby brings marquee endorsement for the platform’s capabilities. With announced wins or partnerships we see the prospects of further PT upgrades. Core IT Services: We value the Core IT Services group at ~$0.50/shr reflecting ~7.5x EV/EBITDA where baseline revenues/EBITDA are roughly US$44M/$6M where the Company’s demonstrated ability to successfully acquire warrants a modest premium. We submit the potential for higher valuations considering the potential for LedgerPay to act as a catalyst for IT Services revenues. We see the Company’s product strength including LedgerPay providing positive acquisition leverage where it has a discipline of using equity as part of transactions. We are bullish on Quisitive’s IT services delivering double-digit organic growth given its leverage Quisitive Technology Solutions Inc. Q120 Preview, LedgerPay; Cloud Adoption Continues; Strong Recurring Revenue Base; Partnerships; PT up $0.45 Projected Total Return: 21.0% Market Data (C$) Market Capitalization (M) 127.3 Net Debt (M) 35.4 Enterprise Value (M) 162.7 Basic Shares O/S 109.77 Avg. Daily Volume (M) 0.088 52 Week Range $0.95 / $0.07 Dividend Yield 0.0% Management CEO Michael Reinhart CFO Top Institutional Ownership % Held -- -- Total Insider Ownership 20.3% Revisions (US$) New Old 2020 Revenue 47.1 47.1 2020 Adj. EBITDA 6.8 6.8 2020 EPS 0.00 0.00 Financial Metrics (US$) FYE 31-Dec 2018 2019 2020E Total Revenue 12.6 18.5 47.1 Adj. EBITDA (1.0) 1.3 6.8 Adj. EBITDA (%) -7.6% 6.9% 14.5% Diluted EPS (0.09) (0.08) 0.00 Valuation Data DCF - Current/Target 1.54 1.72 EV/Rev 9.4 6.4 2.5 EV/EBITDA (123.8) 92.9 17.3 P/E NM NM 3489.7 Quarterly Data (US$) Q1 Q2 Q3 Q4 2019 4.01 4.18 5.34 5.40 2020 11.02 11.29 12.12 12.70 2019 0.2 0.3 0.9 0.3 2020 1.1 1.4 2.0 2.3 2019 (0.01) (0.02) (0.01) (0.04) 2020 (0.00) (0.00) 0.00 0.01 Company Description Michael Murphy, CPA Revenue Adj. EBITDA EPS Quisitive is a digital technology consulting firm whose mission it is to acquire and integrate companies to become a leading provider of Microsoft professional services in North America. Quisitive is one of 35 companies that have earned the designation of “National Solution Provider” or NSP. Most National Solutions Providers are regionally based and have limited ability to expand services to scale to Microsoft’s addressable market. Quisitive plans to create its own tier within the NSP designation as the premier Microsoft Solution Provider in North America, providing scale through acquisition to address the growing demand for Microsoft Azure based services. 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Volume (M) Price (C$) Source: Consensus Data – FactSet, Historicals – Company Filings, Forecasts/Estimates – Echelon Wealth Partners All numbers in US Dollars unless stated otherwise. QUIS-TSXV: C$1.16 Speculative Buy C$1.40 ↑ (prev. C$0.95) Target
Highlight: Shares ahead 51% over the past month and 280% YTD supported a review of our PT and rating. We are moving ahead our C$0.95 PT to C$1.40 looking for commercial contracts and strategic partnerships with LedgerPay as critical catalysts. We introduced QUIS to our Top Picks Portfolio for Q220 with the shares at C$0.41. We highlighted our baseline forecasts, PT, and the potential for LegderPay to be transformational. These considerations support moving our PT ahead to C$1.40. With our prior PT we had specifically stated that we were deliberately reserving room for further upside revisions given potential catalysts leveraging LedgerPay and its relationships with Microsoft (MSFT-Nasdaq, NR) and dunnhumby (Private).
Financial Estimates: We expect Q1220 revenue/EBITDA at $11.0M/$1.1M ahead 175.0%/404.8% y/y and 104.0%/247.2% q/q, and EBITDA margin of 10.2% versus 5.6% a year ago and 6.0% a quarter ago. The Company reports May 28, 2020, after market followed by an earnings call on Friday 8:30 am. Given the current economic environment, with its year-end results issued April 30th, the Company released preliminary Q120 guidance with revenue put at $10.9-11.1M and adjusted EBITDA at $1.0-1.2M compared to our previous forecasts of revenue/EBITDA at $10.1M/$1.4M. At that time, we increased our 2020/2021 revenue/EBITDA by $5.7M/$0.8M and $5.8M/$1.3M to $47.1M/$6.8M and $53.4M/$8.5M, respectively With respect to the Q120 preliminary guidance, were encouraged by the revenue outperformance while the modest EBITDA pressure was attributed to higher investment costs in LedgerPay where costs are expenses rather than capitalized. We continue to highlight that we look for further potential upside to our baseline assumptions as the Company signs additional LedgerPay and legacy cloud business contracts.
LedgerPay: Global payment technology providers average 10.6x/8.7x 2020/21 revenues. We previously reflected a baseline valuation of 7.5x times the lower end of our baseline LedgerPay SaaS and license related revenue run-rate of $7.5-10.0M to derive a base value of $0.50-0.70/shr – not an unachievable target where its first deal with REV19 represented $4-6M. We further noted the potential for LedgerPay to successfully sign a bank sponsor either exiting 2020 or in early 2021 and/or the potential for it to emerge as the default payment platform for Microsoft Azure and it could transform upside considerations. We feel these considerations support a valuation at 8x a revenue target of US$10M yielding a value of US$80M+ or ~$0.95/shr. We see additional upside noting the company’s reference to a top 20 grocer representing a potential US$30M revenue opportunity for LedgerPay. The alignment with both Microsoft and dunnhumby brings marquee endorsement for the platform’s capabilities. With announced wins or partnerships we see the prospects of further PT upgrades.
Core IT Services: We value the Core IT Services group at ~$0.50/shr reflecting ~7.5x EV/EBITDA where baseline revenues/EBITDA are roughly US$44M/$6M where the Company’s demonstrated ability to successfully acquire warrants a modest premium. We submit the potential for higher valuations considering the potential for LedgerPay to act as a catalyst for IT Services revenues. We see the Company’s product strength including LedgerPay providing positive acquisition leverage where it has a discipline of using equity as part of transactions.
We are bullish on Quisitive’s IT services delivering double-digit organic growth given its leverage
Quisitive Technology Solutions, Inc. (QUIS-TSXV) | May 27, 2020
to remote working and Azure adoption. Clearly, the Company has benefitted from the Azure cloud assessment program that has led to 127 opportunities converting into consulting projects as of December 19, 2019. We anticipate a sizable untapped opportunity associated with its partnership with Microsoft where Azure is still a small component within MSFT’s large enterprise base and the current cloud shift is a significant tailwind. Microsoft announced with its Q220 results an increase of 59% y/y in Azure cloud business, noting that the COVID-19 impact will continue to be reflected in future periods.
Valuation: QUIS is currently trading at a pro forma 2020 EV/Sales and EV/Adj. EBITDA of 2.5x and 17.3x, respectively, versus its North American IT Services and Consultants/Managed Services comparables trading at 1.4x and 12.3x, and 3.5x and 20.7x, respectively (Exhibits 3, 4). We see the emergence of LedgerPay revenues as a significant positive catalyst for both our baseline forecasts and our valuation benchmarking. We note that global payment technology providers average 10.6x/8.7x 2020/21 revenues (Exhibit 5) while our survey of 37 SaaS providers where revenue growth for 2020/21 averaged 17.0%/17.1% reflected 9.9x/8.4x 2020/21 EV/Revenue (Exhibit 6).
Our two peer groups would support a valuation of 6-8x revenues associated with LedgerPay that could represent upwards of $0.40/shr where its SaaS and license related revenue run-rate surpass $5M – not an unachievable target. The Company’s objective is to sign a LedgerPay bank sponsor and launch a scale merchant model to directly compete with the “big 4” as the default payment platform for any Microsoft Azure cloud customer. The prospective signing of a banking partner to pursue a complete platform solution with a target of end of year or Q121 would represent a significant catalyst.
Investment Thesis: Our inclusion of Quisitive in our Top Picks Portfolio mandate for Q220 (March 31 pricing $0.41) reflected our portfolio’s focus on well-managed companies serving growth markets where we see the potential for significant positive catalysts. We believe recent headlines around the overwhelming demand for Azure services support the Company’s alignment with Microsoft. In this regard, we are bullish on the Company’s organic and inorganic growth as a consolidator in the Azure ecosystem. We see the recently announced LedgerPay agreement with Rev19 as a significant step towards LedgerPay securing significant wins in a growth market where the LedgerPay twofold value proposition is compelling.
In addition to its legacy cloud business, we believe that QUIS’s first-party offerings like CRG emPerfrom and LedgerPay offer a huge market potential while reinforcing the Company’s ability to develop high-value software products that support recurring SaaS licensing and maintenance revenue. LedgerPay’s payment and processing cloud platform offers huge potential within the US market alone for non-cash payments in 2016 being put at $144B. With the ability to charge 2% fees on the total payments processed represents an ~$3B TAM opportunity for Quisitive’s LedgerPay. We expect monetization to leverage multiple distribution channels and partnership models.
Exhibit 1 – QUIS: Financial Summary
Note: We have greater confidence in our full-year 2020 forecast; however, quarterly distribution is subject to LedgerPay revenue recognition. We would also like to highlight that the growth in cloud services and consolidation of Menlo will lower gross profit margins in the forecast period while increasing the EBITDA margin. LedgerPay, on the other hand, is both gross profit and EBITDA accretive.
Quisitive Technology Solutions, Inc. (QUIS-TSXV) | May 27, 2020
Market Double, Ongoing Momentum Sustainable: QUIS’s share price is up 51% in the last one month when the closest benchmark S&P/TSX Venture Composite Index is up nearly 17% and the broader S&P/TSX Composite index has returned 3%. The strength in QUIS represents an ongoing trend rather than a recovery move as QUIS shares are ahead 280% on a YTD basis. We ascribe the consistent strength to the Company’s successful IT services acquisitions together with its leverage to surging cloud computing and the announcement of its first commercial contract for LedgerPay where QUIS strategically selected Rev19 where it represents a strong proof-of-concept (POC) and proof-of-economics (POE) client. We note the positive response to the Company’s recent virtual investor conference where partners Microsoft and dunhummby alike were very specific and supportive in describing the importance of their partnerships. We believe the merits behind QUIS’s selection as Microsoft’s US Partner of the Year award for 2019 moved from a commercial award to take on deeper elements of its strategic alignment. Similarly, QUIS’s alignment with dunhummby took on a strategic element where the Company played a role in supporting the merits of Microsoft’s Azure to dunhummby. This preceded dunhummby signing on with Microsoft’s Azure and moving away from Google.
Focus on SaaS, Remote Working: The COVID-19 outbreak has supported the long-term secular tech trend of increased cloud adoption by companies across industries. Morgan Stanley’s Q120 AlphaWise CIO survey reflects the momentum behind Microsoft’s Azure as its benchmark survey revealed that 39% of CIOs prefer Microsoft Azure, followed by 25% voting in favour of Amazon’s AWS (AMZN-Nasdaq, NR). We believe that Microsoft with its enterprise software suite and long-standing client relationships is expected to benefit from the accelerated telecommuting adoption. Quisitive’s 2019 US Partner of the Year award reflected recognition of its ‘cloud assessment program’ as it drove adoption of all three Microsoft clouds and Microsoft O365 services. In awarding QUIS, Microsoft recognized the Company’s 121 assessments that led to $400M in Azure Consumed Revenue (ACR). We believe that the partnership with Microsoft has become critical in the current COVID-19 period when cloud infrastructure spending is expected to increase by 3.6% to $61.9B in 2020, as reported by IDC. More than the growth, disruption in the market is bringing greater value to the Microsoft partnership for both organic gains and as an industry consolidator.
LedgerPay Potential – Bold Ambitions, Supported by Microsoft, dunnhumby: The platform provides merchants with the ability to tokenize payment data that can then be monetized either directly via resale to third parties such as brands or internally through deriving tactics to better realize on buyer behaviours with targeted promotions. Furthermore, we believe the platform insights can be monetized by QUIS given its partnership with dunnhumby. For those not familiar with the space, dunnhumby is owned by Tesco [large retailer based in Europe]. It is recognized as the global leader in customer service data sciences. The LedgerPay platform also provides a cost-effective, easy to integrate, payment processing service on a cloud platform to the ISOs (Independent Sales Organizations) like Rev19, or the merchants directly. Both the payment and tokenization (data collection) services are independent and complementary to each other and provide a huge opportunity in the market where $7.1T (~35% of the US GDP in 2018) worth of transactions in 2018 were cashless, up from $5.5T in 2015. The payment market is undergoing significant technology shifts as cloud capabilities overtake traditional topologies and the ISOs (independent sales organizations – they work directly with the end client) and the payment processors themselves are seeing aggressive consolidation (currently 4-5 primary from 8-9 previously). The ISOs aggregate payments from their end clients and they turn to the payment processors who deal with the end banks for credit processing.
Forrester in its November 2019 report entitled, “The Future of Retail Revenues Must Be Data Led” indicated that 85% of grocers stated developing new revenue streams was their top priority. In sizing the opportunity, Quisitive indicated that a US grocer ranked in the top 10-20 processed $1.6B of non-cash payment transactions. This was characterized as a $30M annual revenue opportunity for LedgerPay. Partners such as dunnhumby can monetize retail data for up to ~0.25% of a retailer’s top line.
Turning to the payment processing aspect, as a rule of thumb, ISOs can realize a similar 0.25% while the largest prospect lies in the roughly 1.5-2.0% that the payment processors realize. It should be noted that Quisitive’s LedgerPay platform can work with ISOs and payment processing companies but it could also partner with a bank to launch a scale, direct processor to compete with the four to five primary payment processors in the US, as the default payment platform for any Microsoft Azure cloud customer. We note that Quisitive has historically worked with the Chase Bank in developing the payments solutions. Please refer to Exhibit 2 for depictions of the payment and tokenization ecosystem flows according to the cardholder and in the eyes of Quisitive.
Quisitive Technology Solutions, Inc. (QUIS-TSXV) | May 27, 2020
Consistent with our description of “bold ambition” we note that Quisitive indicates that “Quisitive’s LedgerPay SaaS solution is poised to disrupt the status quo and transform payment transactions into beneficial, profitable and actionable experiences for both merchants and consumers through cloud-based payment and data analytics solutions.”
We don’t typically clip company position statements; however, we feel it was worthwhile in this case to reflect the potential of LedgerPay to transform Quisitive. In a less bullish perspective, base case scenario, we see it having significant value as the Company’s differentiator as it builds organically and through acquisition in its Microsoft aligned model.
Rev19 Deal: On March 26, QUIS announced signing a deal with Rev19, a private, Texas-based merchant services, and financial technology company that includes software license, annual license support and maintenance, and annual support and production services for its payment processing and payment tokenization platform ‘LedgerPay’. Financial terms of the deal were not disclosed; however, management noted that the value of the deal is expected to cover LedgerPay’s cost of development, generate profit, and contribute towards investments for future development. QUIS is actively working with Microsoft to co-develop additional features for tighter integration of LedgerPay on Microsoft Azure. Although non-exclusive, QUIS’s partnership with Microsoft and dunnhumby is collectively significant to enhance the product marketability by adding additional functionalities. Rev19 has been an aggressive acquirer of merchant service companies over the LTM with its annual retail clearance volumes now >$1B.
Financial Impact: The agreement with Rev19 includes upfront payment and annual support, services, and production fees. The deal is heavy on license fees that are nearly 80% of the total value and will be realized in the next three quarters. Management expects Rev19 to go live with LedgerPay in H220, where the service payments are expected in 2021. With an estimated $2M spent on the development of LedgerPay in the last 2.5 years, out of which an estimated $1M was spent in the last one year, we estimate the value of the deal to be between $3-5M. We see additional upside from LedgerPay as the Company signs additional contracts and delivers on the Rev19 contract.
Exhibit 2 – LedgerPay Ecosystem; Tokenization Value Chain
Quisitive Technology Solutions, Inc. (QUIS-TSXV) | May 27, 2020
Valuation
QUIS is currently trading at a pro forma 2020 EV/Sales and EV/Adj. EBITDA of 2.5x and 17.3x, respectively, versus its North American IT Services and Consultants/Managed Services comparables trading at 1.4x and 12.3x, and 3.5x and 20.7x, respectively (Exhibits 3, 4). We see the emergence of LedgerPay revenues as a significant positive catalyst for both our baseline forecasts and our valuation benchmarking.
Global payment technology providers average 10.6x/8.7x 2020/21 revenues (Exhibit 5) while our survey of 37 SaaS providers where revenue growth for 2020/21 averaged 17.0%/17.1% reflected 9.9x/8.4x 2020/21 EV/Revenue (Exhibit 6).
Quisitive Technology Solutions, Inc. (QUIS-TSXV) | May 27, 2020
Important Information and Legal Disclaimers
Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with
our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy.
Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading
instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and
companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign
currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may
increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way
warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own
accounts and for the accounts of other clients.
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of
Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form.
Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners
Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research
report in whole or in part without permission is prohibited.
Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect
any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.
U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian
Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners
Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research
analysts. Any resulting transactions should be effected through a U.S. broker-dealer.
U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian
Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE
INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities
discussed herein.
Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information,
opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.
ANALYST CERTIFICATION
Company: Quisitive Technology Solutions, Inc. | QUIS:TSXV I, Rob Goff, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES
Is this an issuer related or industry related publication? Issuer
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No position; and, 2) What type of security is it? None.
No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.
None
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?
No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?
No
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No
Has the Analyst had an onsite visit with the Issuer within the last 12 months? No
Has any Analyst, Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No
Quisitive Technology Solutions, Inc. (QUIS-TSXV) | May 27, 2020
RATING DEFINITIONS
Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.
Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.
Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.
Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.
Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.
Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.
Dropped Coverage
Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.
RATINGS DISTRIBUTION
Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender
Number of recommendations 39 34 16 1 9 1 4
% of Total (excluding Restricted) 39% 34% 16% 1% 9%
Number of investment banking relationships 14 13 6 0 3 1 1
% of Total (excluding Restricted) 39% 36% 17% 0% 8%
PRICE CHART, RATING & PRICE TARGET HISTORY
Date Target (C$) Rating
* 14-Aug-18 1.50 Spec Buy
26-Sep-18 1.00 Spec Buy
27-Nov-18 0.40 Spec Buy
06-Jun-19 0.46 Spec Buy
10-Feb-20 0.60 Spec Buy
03-Apr-20 0.70 Spec Buy
24-Apr-20 0.80 Spec Buy
01-May-20 0.95 Spec Buy
27-May-20 1.40 Spec Buy
Coverage init iated: 08/14/2018 Data sourced from FactSet
