In this post, I present a summary of what the company conveyed in its latest press release (see link above) and my thoughts on it. I would like you to note my closing comments and the disclaimer at the bottom of the post, as always.
Terrific Interest and Increasing Cash Flow
According to the press release, there was a great interest from investors in connection with the latest capital acquisition.
“[…] terrific interest from the investment community,”
Martin Cronin, CEO.
The company also notes that the company’s working capital has now increased with $15M which “enables us to expand production efforts to meet the global demand of PATSCAN”.
The company is sought after by major investors. Canaccord is an example. This is of course always important, not least for newly started smaller companies that face expansion and commercialization of their product. Here we have the CEO, who makes it very clear that the interest has been very large among investors. I assume that there were investors who were rejected in this round of caputal aquisition. I think Martin Cronin’s very straightforward and direct statement on the terrific interest from the investor community is very positive and important, not least because of the PR that this brings about and that investors are talking about Patriot1Tech – the word is spreading.
The company now has $15 million that will be utilizes on the expansion to meet the global demand of PATSCAN. Money is available. There is a global demand. Note which words the company chooses to communicate. They could have chosen many other ways to communicate this. Here they choose to repeat and state that there is a global demand – in the midst of the company’s ongoing commercialization process. To stick their necks out at this time and in such a straightforward way should confirm that there is indeed a great global demand, as the company has previously expressed.
The recent funding will also be spent on the ongoing development of the product. Demand for a mobile PATSCAN is high among police and military. Even the software will be developed to expand the database of objects the system can identify.
The fact that the company is already working on product development and especially the development of a new mobile device for police and other security personnel, I interpret as that the company is at the forefront and is proactive. It is important to be responsive to what the market demands. The fact that the company is already able to allocate time and resources to additional products such as this mobile device, in my opinion, indicates that the company already has a stable business regarding the current product.
Installations and Evaluation
Patriot1Tech confirms in the press release that the company is now in the process of rolling out installations at “early adopter clients” to test the software under real-world conditions. The PATSCAN system is currently being installed in the United States (Las Vegas) and in Canada. This is in accordance with what was previously communicated by the management and a confirmation that this goes according to plan. According to the company’s presentation of key milestones in Q4, we can read “Initial delivery and installation at client locations.”
Here I believe it is appropriate to recall what President Martin Cronin has said earlier:
“So, we’re having to identify some early adopter clients who we can work with who will be a key point of reference in the market and who have the level of sophistication to work with us to look at how best to deploy, make sure that we can learn any lessons from the field that we haven’t anticipated and that they as a client can really think about how they can deploy it.”
“So, the initial roll out is a relatively small number of sites with early adopter clients, so … they can learn how to implement the system. That will prepare us for a mass market roll out in 2018.”
Patriot1Tech will host a security forum in Las Vegas
In December, Patriot1Tech will host a security forum in Las Vegas at Westgate Las Vegas Resort & Casino, for security managers in various industries, including the entertainment industry, property management and law enforcement agencies such as the police.
Strategically well planned. Organizing a conference or forum for managers in security in different industries provides good PR for the company. That Patriot1Tech is choosing Las Vegas thinks I’m really good. Partly because of the recent mass shooting, partly because it is where the company will establish a development center (see below). Hopefully this will generate new contacts, potential buyers and customers. Not least, it is goodwill for goodwill and PR for the company.
Unfortunately, we do not know if a demonstration of the PATSCAN will be available during the forum. But here I would like to point out that Patriot1Tech has signed an agreement with Westgate Las Vegas Resort & Casino to test the technology and product with the purpose of evaluating the integration capabilities of existing security solutions.
I consider it highly unlikely that Patriot1tech would choose to hold the forum at the site where their product is installed and used, unless the product is functioning well. Here I would like to remind you of the press release of March 23, 2017: “Patriot One announces the evaluation and purchase agreement with iconic Las Vegas property, Westgate Las Vegas Resort & Casino, where it is stated that Westgate will have the product installed and test it at its facility and integrate it with its existing security system. Note that Westgate’s management in this connection stated that this is hopefully the first of many installations at their facilities across the United States. Westgate Las Vegas Resort & Casino has long been an iconic landmark and the chain has facilities in 28 locations around the United States. Patriot1Tech’s CEO Martin Cronin commented as follows: ”As a first class showcase for our company, we thank the Westgate team for their vision and leadership in providing us the opportunity to deploy the installation in front of a key audience.”
Development Centers, Training Centers and Showroom Centers
Patriot1Tech already has two development centers in Ottawa and Burlington, Canada. During Q4 2017, the company will establish another two development centers in the United States (Las Vegas) and Great Britain (London). The planning of these centers is done together with the company’s key strategic partners.
Patriot1Tech will also open two showrooms for PATSCAN. One in Burlington, Canada and one in British Columbia, Canada. Here, investors and potential customers will be able to view and test PATSCAN and the software in a variety of environments and scenarios. The center in British Columbia will also be a training facility where customers will be trained in how to use the product.
In my view, this is a very important milestone and a major step in both the development and commercialization process for Patriot1Tech. The company will thus establish not only one but several development centers, one of which will be in London, UK and one in Las Vegas, USA. I can not interpret this in any other way than the company has good grounds for this decision. Adding resources and energy to setting up not only development and exhibition centers but also training facilities for customers is, in my opinion, an important signal to the market and not least shareholders that the company is convinced that the customer base exists and that it will close several major orders and sales agreements with key strategic partners, which is both a prerequisite and guarantee of success. So I find this to be very positive indeed.
Extension of staff with leading global experts
Patriot1Tech has employed two more engineers with weapons detection and cognitive microwave radar expertise. These two experts will lead the development center in London. They also possess more than two dozen patents in the area. This means that the company now has six of the world’s leading experts employed, which is unique in the industry.
This is difficult to make a deeper analysis of. I would like to know more about what patents they bring with them of course. But choosing to set up a development center in London and hiring another two world-leading experts in the field is a good sign and a confirmation that the company will establish itself in Britain as well as having a key strategic partner there.
Final comments and disclaimer
I probably sound extremely positive. I am a shareholder in the company and of course I have an interest in that the company is doing well. My goal is to always be as neutral and objective as I can be where I try to present the avaliable facts. Then I try to add my thoughts and I try to make a distinction between what we actually know and what are my interpretations. But I’m not perfect in any way, so sometimes this may be unclear. But I would like to share my analysis and which companies I identify as interesting. That’s the whole purpose of my blog and I’ve understood that there are many who appreciate reading my blog. Since the start of August I have had almost 12,000 readings of my articles. I am very thankful, happy and proud of the great interest you readers seem to have in my blog.
And as usual, I would like to clarify that this is a post based on information about that company and my own theories and thoughts. Everything that is presented in this blog post should therefore be seen as my own opinions. I never mention figures such as fair price value in my published analyzes or posts because I think everybody should do this themselves and form their own opinion. I want to emphasize that the post is aggregated information and my own theories about what may happen in the future. I own shares in Patriot One Technologies. This should not be seen as advice. You are responsible for your investments and making your own analysis before investing. I never get paid to write anything on the blog. All thoughts and opinions are my own.