PCT Ltd (PCTL)

[NewJerichoMan]

Summary of Conference Call

1. PCTL’s US marketing efforts of its patented Annihilyzer Infection Control System
Biggest news of the call IMO. Currently have 26 systems in place. By year end, they will have a *minimum* of 40 systems in place.

Fort Wayne won’t be fully operational for at least 3 to 4 months. Noted that they will start installing Annihilyzer units before they achieve 100% fully operational status. It is much easier distribution from the Indiana (to that concentrated population base) than from South Cackalacky.

Also noted 2 new distributors coming online in Q4: Denver and Kansas. Denver is building a new user-specific facility. This is Desert Eagle’s facility. Noted the very tasteful Kansas peeps bought a $450,000 building from which to run the business. Both these businesses are not fly-by-night, and are committed.

Noted they took 12 to 15 calls per week of people looking to become distributors. Didn’t specify on which Level (I, II, III).


2. Update of activities in the United Kingdom
Second biggest news IMO and the reason the call was September 29th was because of the timing of UK purchase order. We have a “partnership” and purchase orders - both new developments. We have received upfront money to start. No details were given on the size and scope of the UK deal.


3. Settlement of outstanding debt and increasing shareholder value
This is a “nettlesome” problem. Basically said we’re a cash poor company and there are two ways to settle the Notes: cash or shares, or a combo thereof. Didn’t elaborate much on this topic. Tone sounded like going forward that more Notes would be settled with shares versus cash. Historical example is Note 5(i) which was settled with a 60/40 split between equity and cash. Perhaps going forward, that sort of settlement example will shift more towards equity than cash.


4. PCTL’s recent application for listing on the OTCQB
We’re there. Taking these steps to hopefully go to the Nasdaq someday. Made it clear it’s a process and well into the future. Same with reverse splits (noted loser move except in certain situations) and share buybacks.

Noted they always have a “spot” for angel investors. Only found “demon” investors thus far offering hard money. Fast growing companies need cash to fuel their growth. PCTL is lacking fuel.


5. Web development, including website redesign and digital initiatives
Hired a Virginia-based firm to do the marketing, redesign the website, and spoke of their commission basis for bringing in new clients.
Hired 2 new accountants and 1 sales person to handle increasing demand.


6. Additional activities in the healthcare and oil and gas industries
In the midst of the major beta testing on 7 wells with Catholyte. Spoke of David Holcum(sp?) (consultant bringing in the business, potentially) and not sure if it works but will find out in about 4 to 6 weeks.


7. PCTL’s guidance for remainder of 2020.
$4M guidance = stands by it. It wasn’t emphatic but he said what he said. 2021 will see growth. There is no guessing on which direction revenues will go (up) but gave no insight on the magnitude of the increase.

Noted that if anyone has complaints, they should dial 1-800-GFYourself.


Summation
Biggest news was the increase of Annihilyzer systems from 26 systems to a *minimum* of 40 by year’s end. Second biggest news was the UK deal is locked in and the “trigger” has been pulled. This could be the biggest news but there were no details on size or scope. He reiterated the $4M guidance but it wasn’t emphatic.

It wasn’t all rainbows and butterflies. Implied conditions of our cash poor company, which not only limits growth but also how we deal with existing Notes. Notes are being worked on but it’s a process. Was hoping to hear about what those new 34M restricted shares paid off.

Played it pretty close to the vest on most answers. Won’t need to file an 8K overnight because while we got some important confirmations, we got limited detail.

Overall, it was a decent call. I’d rate it a 7 out of 10. I’d guess the price action tomorrow isn’t going to be positive. OTCX has been around lately so upside movement is a low probability event. Sideways is a decent probability event. Highest probability is for downward movement. I’m less excited about those shares I snagged at $0.036 today.