PCT Ltd (PCTL)

[Dclutch72]

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.