Here is a good message I found regarding S & L.....
Before this deal, S & L could convert their warrants below market price, putting downward pressure on the PPS. This is no longer the case, and the Company has no more debt in the process. IMO: I cannot say whether or not they will ''cash out'', no more than I can say you or anyone else will. However, they are letting go of tens of millions of dollars worth of warrants/shares. Why? Just to cash out? I don't think so.
It is clear to me that Lincoln and Swartz see value in the future of PTSC and were willing to make some concessions to eliminate PTSC's debt along with the downward resets at Pohl's request. And by holding long as 10% owners, ultimately come out tens of millions and perhaps hundred's of millions USD ahead. And to sweeten the deal, Pohl has thrown in the added value of dividends. In that Feb Pr, a spokesman for Lincoln Ventures, and Swartz Private Equity, announced that ''Lincoln and Swartz are pleased with the progress of Patriot's intellectual property enforcement program through its joint venture portfolio partner, The TPL Group. We have confidence in their program to secure additional licensing transactions with users of the patented technologies of Patriot and TPL, and the potential for sustained revenue to the Company.''
In the past they could sell without disclosure. Now
with their holdings exceeding 5% they will need to make appropriate SEC filings upon future dispositions of the Company's stock.
So, if they do sell, we will know about it.
I believe this deal is a good thing, because it puts to end a bad thing. It was good for them either way now it's good for all of us. In fact since this deal was announced, it has been nothing but, good for us.
If S & L have any faith at all in TPL and the multitude of suits brought forth on behalf of PTSC and the MMP Patent Portfolio, then it would be way premature of them to sell and cash out at this point. There are so very many other companies involved in the patent infringment, which have not been settled as yet! They would have too much to potentially lose, selling a this point.
It all hinges on how much faith they have in TPL's ability to bring forth settlement after settlement.
