Quarterhill Reaches Favorable Mediation Agreement, Strengthening Tolling Contract
Quarterhill (OTCQX: QTRHF), a global intelligent transportation system solutions provider, has successfully concluded mediation negotiations with a key tolling customer. The agreement includes a one-time payment in Q3 2025 for historical cost recovery and establishes improved contract terms.
The new agreement features enhanced payment terms, revised performance standards, and a structure that increases annual revenue while reducing costs. Notable elements include a three-year operations and maintenance period with a termination-for-convenience provision and financial incentives for strong performance.
Quarterhill (OTCQX: QTRHF), fornitore globale di soluzioni per sistemi di trasporto intelligenti, ha concluso con successo la mediazione con un importante cliente del settore pedaggi. L'accordo prevede un pagamento una tantum nel terzo trimestre 2025 a copertura di costi storici e introduce condizioni contrattuali migliorate.
Il nuovo contratto include condizioni di pagamento più favorevoli, standard di performance rivisti e una struttura che aumenta i ricavi annuali e riduce i costi. Elementi salienti sono un periodo di operazioni e manutenzione di tre anni con clausola di risoluzione per convenienza e incentivi economici legati a prestazioni superiori.
Quarterhill (OTCQX: QTRHF), proveedor global de soluciones para sistemas de transporte inteligente, ha concluido con éxito la mediación con un cliente clave de peaje. El acuerdo contempla un pago único en el tercer trimestre de 2025 para recuperar costes históricos y establece términos contractuales mejorados.
El nuevo acuerdo incluye condiciones de pago mejoradas, estándares de rendimiento revisados y una estructura que incrementa los ingresos anuales y reduce los costes. Entre los aspectos destacados figuran un periodo de operación y mantenimiento de tres años con una cláusula de terminación por conveniencia y incentivos financieros por buen desempeño.
Quarterhill (OTCQX: QTRHF)는 글로벌 지능형 교통 시스템 솔루션 제공업체로서 주요 톨링(통행료) 고객과의 중재 협상을 성공적으로 마무리했습니다. 이 합의에는 과거 비용 회수를 위한 2025년 3분기 일시금 지급과 개선된 계약 조건이 포함됩니다.
새 계약은 향상된 지급 조건, 수정된 성능 기준, 연간 수익 증대 및 비용 절감을 위한 구조를 담고 있습니다. 주요 내용으로는 해지권(편의에 의한 해지)을 포함한 3년간의 운영·유지보수 기간과 우수한 성과에 대한 재정적 인센티브가 있습니다.
Quarterhill (OTCQX: QTRHF), fournisseur mondial de solutions pour systèmes de transport intelligents, a conclu avec succès la médiation avec un client majeur du péage. L'accord prévoit un paiement unique au troisième trimestre 2025 pour la récupération de coûts historiques et instaure des conditions contractuelles améliorées.
Le nouvel accord comporte des modalités de paiement renforcées, des normes de performance révisées et une structure qui augmente les revenus annuels tout en réduisant les coûts. Parmi les éléments notables figurent une période d'exploitation et de maintenance de trois ans avec clause de résiliation pour convenance et des incitations financières liées à de bonnes performances.
Quarterhill (OTCQX: QTRHF), ein weltweit tätiger Anbieter intelligenter Verkehrssystemlösungen, hat die Mediationsverhandlungen mit einem wichtigen Mautkunden erfolgreich abgeschlossen. Die Vereinbarung umfasst eine einmalige Zahlung im dritten Quartal 2025 zur Rückdeckung historischer Kosten und etabliert verbesserte Vertragsbedingungen.
Der neue Vertrag sieht bessere Zahlungsbedingungen, überarbeitete Leistungsstandards und eine Struktur vor, die die jährlichen Einnahmen erhöht und die Kosten senkt. Hervorzuheben sind ein drei Jahre laufender Betrieb- und Wartungszeitraum mit einer Kündigung-aus-Belieben-Klausel sowie finanzielle Anreize für gute Leistungen.
- One-time payment to be received in Q3 2025 for historical cost recovery
- New contract structure increases annual revenue while reducing costs
- Implementation of improved payment terms and performance incentives
- Secured three-year operations and maintenance period with financial incentives
- Agreement still pending final approval from customer's governing body
- Inclusion of termination-for-convenience provision creates potential contract uncertainty
The resolution, reached through constructive mediation, reflects the shared commitment of both Quarterhill and its customer to fostering a strong, long-term partnership. Together, the parties chose to reset the relationship on positive new terms, laying the foundation for a healthier, more collaborative, and mutually beneficial future.
Pending final approval by the customer's governing body, the resolution includes a one-time payment to Quarterhill in Q3 2025 to address historical cost-recovery matters. In addition, the agreement secures improved payment terms, enhanced performance standards, and a structure that raises annual revenue while simultaneously reducing costs associated with the previous contract. Importantly, the new terms also provide a termination-for-convenience provision covering a three-year operations and maintenance period, with financial incentives that support stronger margins and reward exceptional performance.
"This outcome represents an exciting step forward for Quarterhill and our valued customer," said Chuck Myers, Chief Executive Officer of Quarterhill. "By working together in good faith, we've not only resolved past issues but created a framework that strengthens our relationship, improves predictability, and sets the stage for long-term success. This agreement underscores the trust our customers place in Quarterhill and highlights the Company's proactive approach to building sustainable partnerships. We're proud of this resolution and energized about the opportunities it creates for both sides as we continue to deliver smarter, safer, and more efficient transportation solutions."
This resolution marks a significant milestone in Quarterhill's operational transformation, offering greater clarity for shareholders while reaffirming the Company's commitment to strong customer relationships and forward-looking growth.
About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry. Our goal is technology-driven global leadership in ITS, via organic growth of our tolling and enforcement businesses, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com.
Forward-looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements relate to future events, conditions or future financial performance of Quarterhill based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "goal", "expect" and similar expressions. Specifically, this news release contains forward-looking statements relating to, but not limited to: approval of the mediation agreement by the customer's governing body; operational and financial impacts of the agreement; the results of the Company's efforts to improve margins and strengthen its financial position; the Company's operational transformation and growth expectations.
Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements contained in this news release include, among others, approval of the Agreement by customer's governing body; demand for Quarterhill's products and services; general economic and market conditions; competition; risks relating to technological advances and cyber-security; force majeure risks; risks associated with operations in foreign countries, including but not limited to changes in government policies, political or economic instability, currency fluctuations, difficulties in enforcing contracts and intellectual property rights, differing regulatory and legal requirements, and potential difficulties in repatriating funds; and other risks set forth in the Company's most recent annual information form available on SEDAR+ at www.sedarplus.ca.
The Company believes the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Material factors and assumptions used to develop the forward-looking statements contained in this news release include, among others: Quarterhill's ability to execute on its business plan; demand for Quarterhill's products and services; operating assumptions; and financial projections and cost estimates. The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Company's operations or financial results are included in the Company's most recent annual information form and other public documents on file with the Canadian Securities regulatory authorities on www.sedarplus.ca.
The forward-looking statements represent the Company's views as at the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual events and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statement. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
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SOURCE Quarterhill Inc.
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