One of the clear spots of momentum and upside volatility in the OTC market space over the past month has been in shares of PCT Ltd (OTCMKTS:PCTL). To spark the action, the company just put out an interesting 8K that has sparked a major wave of buying. We don’t whether or not the information in that filing is dependable in terms of follow-through from the associated parties. But the theme is effectively about a major strategic investment from a Canadian company that comes with a price tag well above current share prices for PCTL. Frankly, we would be somewhat cautious with the story. Be from Missouri, as Jesse Livermore used to say – they have to “show me” that it’s for real.
According to the filing, “On July 12, 2019, the Registrant entered into a binding letter of intent with 2705908 Ontario Inc., a recently incorporated Canadian company. Pursuant to the terms of the LOI, the parties agreed to negotiate and enter into a definitive agreement pursuant to which, by way of a loan agreement and option agreement, Ontario will be entitled to acquire at least 51% control of the Registrant, through the acquisition of common shares in the capital of the Registrant and direct issuance of common shares from the Registrant. Following completion of the Proposed Transaction, Ontario will use its commercially reasonable efforts to complete a transaction to list on the TSX Venture Exchange or the Canadian Securities Exchange, which transaction will likely be a reverse take-over with a publicly listed shell company and considered a Qualifying Transaction.”
PCT Ltd (OTCMKTS:PCTL) trumpets itself as a company that, through its subsidiary, Paradigm Convergence Technologies Corporation, develops and licenses environmentally safe solutions in the United States and internationally.
It offers Hydrolyte, a sanitizer/disinfectant microbiocide that delivers decontamination and sterilization for use in institutional facilities, agriculture industry, oil and gas industry, and water in public and private water systems, as well as in industrial waste-water systems; and Catholyte, a non-toxic mild detergent, degreaser, and surfactant used for janitorial cleaning purposes.
The company was formerly known as Bingham Canyon Corporation and changed its name to PCT LTD in February 2018. PCT LTD was incorporated in 1986 and is headquartered in Little River, South Carolina.
According to company materials, “About PCT LTD (“PCTL”) focuses its business on acquiring, developing and providing sustainable, environmentally safe disinfecting and tracking technologies products. The company acquires and holds rights to innovative products and technologies, which are commercialized through its wholly-owned operating subsidiary, Paradigm Convergence Technologies Corporation (PCT Corp). Currently trading on OTC, “PCTL” aspires to and is actively engaged in preparations for up-listing its common stock to a national securities exchange. The Company established entry into its target markets with commercially-viable products and now continues to gain market share.”
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As noted above, PCTL just put a filing – actually it hit about two weeks ago – that was about an LOI to negotiate and enter into a definitive agreement with Ontario Inc., pursuant to which, by way of a loan agreement and option agreement, Ontario will be entitled to acquire at least 51% control of PCTL.
We’ve witnessed 990% added to share values of the listing over the past week of action. Furthermore, the company has seen interest climb, with an increase in recent trading volume of greater than 1200% over the long-run average.
According to the company’s prior release on the efficacy of its core tech, “The Annihilyzer Infection Control System produces on-site generated Electro-Chemically Activated cleaning and disinfectant fluid solutions that allow hospitals to move away from traditional disinfectants that are toxic and can cause harm to the people, equipment and furnishings that are exposed to them. The Annihilyzer Infection Control System produces a hospital-level disinfectant fluid solution that is effective against hospital-acquired infections (HAI’s) like MRSA, VRE and C-diff, yet these fluid solutions pose none of the threats of the previously-used disinfecting chemicals. The system also includes a patented RFID material tracking system that not only tracks the life cycle of the disinfectant, but also supplies hospital administrators with valuable data about who performed sanitation services, when and where those services were provided, and confirms that the disinfection process protocols were followed.”
At this time, carrying a capital value in the market of $2.65M, PCTL has virtually no cash on the books, which is balanced by about $3M in total current liabilities. One should also note that debt has been growing over recent quarters. PCTL is pulling in trailing 12-month revenues of $420K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 365%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $PCTL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PCTL, either long or short, and we have not been compensated for this article.