I don't post often, but thought this was worth posting.
I spoke with Gary today. I had called him twice last week and left a voicemail each time. He returned my call this afternoon. He spoke with me for a half hour and answered all my questions. He said the 8K today was to put out the final word on the Ontario deal as there was a lot of confusion regarding the status which resulted in a lot of calls to the company.
He also said sales are increasing by word getting around, and hospitals that use the system are seeing a high decrease in cases of (I think he said C. diff). Those that try the system buy it because it works.
I thanked him for his time and for being forthcoming in the 10Q about the debt situation.
He said they are addressing the debt aggressively, and they are in a much better position to negotiate now than when the Magnolia and Ontario LOIs were signed. From what he said, they walked away from the Ontario deal, not the other way around.
Also, the part of the "package" that is no longer being supplied by Annihilare/PRIME ITS is cloud storage related. Something another vendor could provide as is stated in the 10Q. PCTL owns all of the IP related to the product.
The 10Q does mention a small piece of "protocol" IP that Annihilare is claiming they own exclusive rights to and PCTL is disputing as it was jointly developed. I forgot to ask him about this, but the 10Q states that it is not a critical piece of the package and would have only a minimal impact if they were not able to use it.
I asked him if they had the production capacity to ramp up if a large number of orders came in, and he assured me that they do.
There is still a long way to go, but the conversation was very encouraging, in my opinion.
He also invited me to come see the office if I am ever in eastern SC as I live about 4 hours from there.
Make your own decisions about whether to buy, hold, or sell but thought this might give a little encouragement to those still in.
