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I'm not an expert so someone please correct the record if I'm wrong on this but:
In my experience, a "regular bank" would probably max out at around $5 million on a business loan and that would be under perfect circumstances. They could go to a different lending institution (i.e. not their neighborhood bank) which might offer more.
But...PCTL is not current on paying off their existing debts so it;s likely a bank wouldn't want to loan that much to them and anything less doesn't really help them. Even then, if they DID get $5 million, the interest rate would be through the roof and they're just trading one debt for another.
And even at $5 million they'd be juuuuust above paying off all their current outstanding debts but wouldn't have much of anything leftover to do anything else.
Which is part of why the Ontario deal sounded good at least on paper.
$5 mill to wipe out the debt. $5 mill for growth, marketing, sales, and expansion. And they only "give up" 51% of the company. But that $10 mill doesn't have to be paid back.
So in short: they COULD do this but it's every bit as risky as any other kind of loan and they're just adding more debt and more, potentially higher interest payments on top of what they already owe.
The "congrats email" that you're referring to is, I believe, a LinkedIn comment which was congratulating Jody on PCTL winning the TIPS award. I'm not aware of anything else it might have been. If that's the case, that's all it was. Wasn't a hint at anything more.
The Ontario deal was never anticipated because anyone thought it was great to give 51% ownership of the company to Ontario. It was highly anticipated for two reasons:
1. It gave PCTL headway into the Canadian market- which, with their nationalized healthcare system, is potentially huge.
2. Under the terms of the deal, Ontario would basically be wiping out PCTL's debt- which is a substantial roadblock for them right now.
Ultimately giving up 51% of the company may or may not be a good call but collapsing under the weight of mounting debt doesn't help anyone either. So whether or not the Ontario deal as we know it from the LOI was a "good" thing or not who knows. Maybe it was a good deal, maybe it wasn't.
But the general sense of things is that PCTL is on the verge of making a big revenue push after years of not earning much. And they're on the right path. We can see that from their quarterlies. Consistent YoY growth the last several quarters. However, the financing is drying up. The debts are coming due. They need SOMETHING to help keep the lights on and help them grow.
That's going to have to come in the form of either a big deal or a big sale or sales.
What is the rumor and the source?
And what are you basing that on?
All of OTC is a gamble and PCTL is no different.
Everyone was buying based on the potential merger. That hasn't happened. It still COULD happen, whether with Ontario or another company, but we've seen nothing to indicate that it's imminent. So people are getting shaken out and understandably so.
Some of the people selling are selling for a loss. Some are selling for a gain. Some are selling to get back in lower because that potential IS still there.
By all reports, they are still talking with Ontario so that may still happen.
They also have a potential sale this week with their Oil and Gas customer in Oklahoma so that could be positive. They also have their AG trial coming to an end in early October so that could happen and could be quite lucrative as well.
All signs still point to a company with a lot of potential and growing revenue. All that said, they're still a company in a lot of debt and need financing or some big sales to keep things moving in the right direction.
From what I can tell, the company is still on the verge of some really big things but they need help getting over that hump. OR, they're just not concerned with the share price right now because they have more important things to worry about like closing deals or making sales.
As long as the lights are still on, PCTL has a shot to do big things longer term.
I've lost a lot this week as well. Sucks. But that's the OTC.
Some folks will be buying back in this week or next if we continue to drop. At these prices, it makes the gamble less of a risk for a lot of people. For those of us still holding, it aint pretty to see though.
Potential is still there, as much as it ever was, but it is what it is.
-Company has a lot of potential
-Company also has a lot of debt
-Company doesn't have enough revenue to work their way out of that debt
-Company has not released anything materially positive in a long time
-Momentum and enthusiasm has dried up
-Price will continue to go down until there is a reason to go up
Bottom line: we go down until they give us a reason to buy. Then we'll go up.
It is what it is at this point. Barring any news or positive developments, we continue to drop until there's a reason to not drop.
Yep. We'll continue to trend downward until there's a reason for us not to.
Technically they could. An 8K can be used for any sort of material update but if all it is going to say is "talks are still in progress" then they accomplished that in the 10Q earlier this week that basically said that.
They could release an 8K to say they're still talking but it just wouldn't really make any sense to do so unless they had something more substantial to report.
Not necessarily. An 8K can be any important update tbh.
Obviously it would be regarding the merger, my point is that it can't both be the case that they are still in talks about the merger and there is going to be an 8k about it soon.
Here's the part where things get dicey...
If one person spoke to Gary and was told "8K in a day or two" and another spoke to Gary and was told "talks are still in progress".... which one is it?
Because both can't be true.
I would agree with this.
I do know for a fact that some people have indeed spoken with Gary. But I cannot confirm the "8K in a day or two" comments.
I Know More has been relentlessly bashing for weeks and has now all of a sudden changed his tune. Take whatever he says with a grain of salt.
And tbh, take what anyone on here says with a grain of salt. You never know who anyone is or what their angle is.
I'm with you on a lot of these things but I just want people to keep in mind... people on this board are talking about the TIPS Award as though it's the Academy Awards... it's not. Not even close.
It's a nice industry award and they shared it with a dozen other companies. There's nothing wrong with it. But it's not anything more than that.
What congrats email?
lol well, that's one way of looking at it, sure.
PCTL still has as much potential as it ever did. They just need to be more proactive about informing shareholders about what's going on. I find it very hard to believe that there's been NOTHING for them to PR about in the last 5 months. And if they haven't seen any new sales or deals in that time, then we're really in trouble.
That, and they need a deal to go through to really take things to the next level. Not sure they can grow their way out of their current debt. That said, the AG trial being up in October has the potential to be incredibly lucrative so if that goes through, things could start looking up.
Still holding, but cautiously so. PCTL has a good product and increasing revenues. We may yet be pleasantly surprised in the future. It just may take longer to get there than some people might have thought. Won't be buying anymore unless we really tank further and/or start to see some positive momentum.
This is a myth
30,000 posts!
lol I'm just sayin'
In fairness though, CEOs do that for a few reasons, not the least of which is to avoid income taxes. Gary's like 1,000 years old. His "salary" is a "consultant agreement."
At this point, my 100% honest view of PCTL is this:
There's a lot to look forward to with the oil and gas deal potentially getting done this week (4 large units I believe) and the agricultural trial coming to an end in early October.
Those are two things we KNOW are going on right now and are either going to be a done deal which means more revs in Q3... or they won't be. And that'll be bad. But if those sales go through, then we're in good shape for a bit. Or at least the momentum swings in the bull's favor.
Other than that:
A merger or deal, whether with Ontario or otherwise, is still possible.
Here's the thing.. PCTL needs to make a big move. Whether that's a big sale (AG trial could be on that level) or a merger that wipes out the debt like Ontario's was going to be- they're bleeding money and they need some positive momentum.
There's still as much potential as there ever was here with PCTL. Maybe even more, depending on how you read the tea leaves. In the real-world though, they need some forward momentum that helps them make moves. They simply don't have the cash to keep going like this for very long.
I think they know that. Regardless of whatever else they might say, they'd have to know that. They'd have to know that better than we would lol.
So the question does come down to it... are you holding long and hoping they figure it out?
I agree, a bigger bloodbath is in the cards if they don't come up with something relatively soon. Lotta longs still holding but keep in mind where we're at right now is about where people started jump onboard back in late June/ early July.
Some folks are still sitting green but not for much longer. If something to turn the tide doesn't come around soon, expect us to keep trending downward. Bottom line: we'll keep going down until there's a reason for us to go back up.
Short-term it keeps bleeding until it get so low that people start feeling it's a less risky gamble.
I don't think the bottom is MUCH lower than this, but we'll probably continue to trend downward until there's a reason not to.
People behaved as expected with the 10Q. It wasn't a great 10Q. It wasn't horrible either.
It confirmed what we knew/assumed to be true. The company is generating revenue and revenue is increasing steadily year over year. However, their debt is large and they're not making enough money at the present time to cover their obligations.
The stock will move up when there's a reason to move up. The 10Q was a reason to move down.
Must be millennials.
It's not surprising that they did and frankly it was long overdue.
The company should not be communicating with individual shareholders directly in a 1:1 fashion. It's unprofessional and frankly suspicious that they ever did.
Even if the information provided was non-material and even if the information which was provided was correct in some cases, it's not the way to go about things.
For one, it gives the appearance of impropriety if the company communicates with one individual shareholder and not another. Even if nothing improper is actually occurring. It creates a perception, however correct or incorrect, that the company is being secretive and only revealing information on a limited basis.
For another, you see what a circus it turns into here. Name-calling, reporting to the SEC, lying, screaming, accusations, etc... what good does that do us OR them?
And lastly, it's unprofessional. No publicly traded company no matter how big or how small should be communicating with individual shareholders who are asking pointed questions about material events.
This company is not obligated to answer your questions. They're not obligated to return your emails. They're not obligated to answer your calls.
They are obligated to file the reports and filings that they're legally obligated to. That's it. That's what you're entitled to. I'll bet a good amount of money someone finally laid down the law and said enough is enough. Stop answering these emails. And good. It should be that way.
The company should only be communicating to shareholders with publicly available Press Releases and filings. That's it.
Sorry, not sorry. Y'all need to grow up.
It's going to Gary and Jody.
It’s a lot for a small company without a lot of revenue that’s just starting to ramp up production. They can’t afford to do much more than that when they’re adding mills in debt each year.
I’m sure his compensation includes very attractive stock options and a bump once the company ramps up earnings because he negotiated it precisely that way.
Either way, it’s not a 20K salary. That would be crap for a CEO.
No, 90K isn’t exactly big time but the company ain’t there yet.
Gary Grieco gets 20K as a “consultant” fee. He’s not the CEO or the “head honcho.”
CEO gets 90K and a 1K/month housing stipend and a crapton of stock.
I’m not sure 90K is a weak salary tbh. Not for a company that hasn’t turned a profit and is just in the early stages of generating revenue.
Someone who knows more than I about these things would have to explain that one to me.
Hell of a statement to make from a company that doesn’t look close to being profitable right now.
What are they expecting?
Hmmmmmm.
Yeah but the problem there is just that.
Yeah, I mean, it's definitely possible. Just nor sure how likely it is. The Q did say they were continuing talks which is good. It wasn't terminated like the Magnolia deal was terminated in a Q so there's that. They could still be in talks and it could be a done deal I guess. Odds? I dunno. As good as odds as any I suppose.
Well I'm not sure the odds are really that improved to be honest. Maybe we're reading something different? Interested to hear your thoughts. It wasn't a BAD Q... but it wasn't great either.
I see a company with increased revs and that's good but also increased debt. They need a deal to happen badly and to ramp up sales. I GUESS we can take solace in the fact that the deal with Ontario isn't officially dead but... I dunno. They need to get that done and make that move. It's a big "if" to be honest.
It's a gamble. But I'm still in. Not goin anywhere.
Think that about sums it up. However, few in the OTC are thinking longterm and PCTL, while always a gamble, seems more of one now. I think it's obvious the price plummets tomorrow as people jump ship. Might make a good entry point for those looking to jump on board at a much more attractive price point.
But as many have pointed out, much of this info is a month old so who knows what comes next. Could there be developments in the works? Hard to say.
Hoping for some good news coming soon.
What everyone needs to realize is that insiders did indeed buy stock at prices higher than what it is now.....
.... but that’s because that’s what the stock was trading at at the time of purchase.
It isn’t as though insiders see a stock trading at 0.014 and say “you know what, I really believe in this stock so I’m going to buy it for 0.50 a share instead of what it’s currently trading at.”
That’s not how this works.
They pay what the price is.
My opinion, for the record: we’ll continue to trend downward until there’s a reason for us to not.
Yeah I can see the filing was done I just can’t actually see it.
Here’s what the certificate is though.
https://www.nvsos.gov/sos/home/showdocument?id=1078
Yeah, whatever became of that?
lol they wait long enough, they'll have to file their Q3 report soon.
lol PLEASE get this up to .76. I'll be selling so fast....