PCT Ltd (PCTL)

[NYKnuckleballer]

PCTL has until June 30 to indicate their listing intentions to the SEC. Pinks with limited info stock are sort of in purgatory. Limited information doesn't disqualify a stock (although some OTC statements could be read that limited info companies would NOT qualify for OTC retail trading - It depends on the meaning of the word "current").

Been having lots of discussion on this topic. I'm going to relay what I know about this topic. But 1st, two things.

1. This post isn't meant to scare.
2. No one knows the "right answer" as it pertains to companies like PCTL (limited information).

The new amended SEC rule 15C2-11 is designed to get rid of stocks that aren't current. It has 2 big dates: June 30th and September 28th. September 28th is the bigger date. That's the date when "severely delinquent" tickers get dropped down to the "grey market".

June 30th is the date when stocks that could be considered "severely delinquent" - i.e., not current - must "indicate their listing intentions to the SEC".

In discussions I've seen, if a company does not "indicate their listing intentions", they are gone on September 28th - NO MATTER WHAT. Even if they get current between June 30th and September 28th (the whole point of the amended rule), it won't matter because they didn't follow the first bureaucratic step of declaring / applying by June 30th. It appears a company can come back from this but it's looking like a minimum 180-day hiatus from the OTC. Also, unless a company publicly declares their intention, retail won't know if they appealed to the SEC or not.

The lag between the dates is so the paperwork can be reviewed.

Next important question is what qualifies as a "severely delinquent". The rule is supposed to apply to any company that hasn't reported within a year. PCTL reported their 2020 10K. It's within a year's time but not in the current fiscal year. The comments at the top of the page uses language like "purgatory" and "meaning of the word 'current'" etc because it's not clear what happens with "Limited Information" stocks like PCTL. These stocks may be exempt from this rule or they may not.

Stocks that get castigated to the grey market are basically done. Retail will be able to "liquidate" but not "buy". With no one to buy, liquidation gets real bloody. Caveat Emptor stocks were already dropped to the grey markets back in May. One I follow went from $5 down to $0.01 within days. It has a float of <300K shares (not a typo). With no one to buy, it's not an exaggeration to say virtually all value is lost. The one small loophole that may exist is the possible creation of a broader "expert market". The theory is that accredited investors via a typical brokerage account will be able to buy grey stocks. That will be to their benefit mostly, not retail.

In conclusion, none of this matters if PCTL gets current by June 30th.
Also, this rule may not even be applied to "Limited Information" stocks like PCTL. But it may. If it does, 1. PCTL has to indicate their intention by June 30th; if they don't, they are going to the Grey Market 2. if they indicate their intention but don't get current by September 28th, 2020, it's off to the Grey Market. If PCTL goes to the Greys, consider it a near 100% loss.


Here's a link to this topic.
https://www.crowdfundinsider.com/2021/04/173863-cass-sanford-from-otc-markets-comments-on-sec-amendments-that-may-eliminate-public-quoting-in-securities-that-dont-make-current-info-publicly-available/