PCT Ltd (PCTL)

[aandt]

Good to see PCTL clearing up the mystery of the warrants. This helps to clarify why they still showed on the balance sheet when we were being told the company was getting rid of them. Sounds like the mistake lies with the debt holder, in their communication with the auditor.

In May of 2020 the Registrant entered into a debt settlement agreement with one of its debt holders, which settled all debt and warrants held by such holder. However, due to a misunderstanding of the facts and circumstances related to this settlement agreement, The Company did not reflect the warrants as settled at that time. In addition, the debt holder inadvertently conveyed to Sadler, in its annual audit confirmation letter dated March 11, 2021, that the warrants were still outstanding and not cancelled.



On a call and subsequently in writing in August 2021 the debt holder confirmed to Abraham and Sadler that the annual confirmation was wrong, and the warrants should have been cancelled effective the second quarter ended June 30, 2020.

Good to see that PCTL finally has competent hands on deck, looks like Art Abraham is doing his part to get the ship cleaned up and ready for better days ahead.

This is not a case of the company making intentionally misleading statements. I am guessing the auditor forced them to include the warrants since the information provided to them by the debt holder made it appear the warrants were still on the books.