Conversation with PRGJ CEO
I spoke with the company's CEO earlier this morning, as I hadn't heard back from prior messages or emails. Finally got through to Uma and asked a few questions and his answers below:
1) Q4 2010 financials should be coming out soon. No timetable, but he said they're almost done.
2) Company float: OTC Markets.com is a little off on their shares outstanding. Current outstanding is roughly 230mm; with 140mm in the float. (Authorized hasn't changed). His guess is that 80mm is being freely traded with the other 60mm in hands of long traders, but the total is 140mm in the float.
3) Company is actively talking to Private Equity, as well as, Private Investors with regards to a bridge loan. They prefer to not dilute the stock for operating capital as the company believes based upon current contractual agreements for revenues they're hopeful a bridge loan will set them up for further growth. No timetable was given, but something to watch for.
4) $19mm government contracts are an ANNUAL amount and subject to renewal based upon reaching certain milestones, etc. Company is working with sub-contractors on this work and has roughly 35 employees. Company is actively soliciting new business in addition and it's "going well".
5) I asked Uma about the planned spin-off. He said he's heard from many shareholders who voiced opposition, and he said the board is meeting again around April 15th and it will be discussed, but that his thinking now is that they will NOT follow through with the spin-off plan. Subject to change, but that was his thinking.
6) There are NO plans to reverse split the stock at this point. He's comfortable with the current outstanding shares/float structure.
7) Company is still looking at, and having dialogue with, potential acquisition targets. Nothing concrete at this point. Legally he probably couldn't share much on that front anyway.
Overall, I mentioned to him that without news from the company, the stock price has been languishing. He said he doesn't like to see the price this low, but the company is going about business and will share news when appropriate. Feel free to reach out to Uma yourself if you'd like to verify the above dialogue: 732-665-0008.
Good luck to all Longs!!
AI
