canine4558 30 Jan 2007, 09:34 AM EST Msg. 197425 of 197444 (This msg. is a reply to 197412 by mts53.) Jump to msg. # HOLOCOM---An investnent of $700,000.00..? I think not.. Last two 10Qs strongly emphasized alternatives for an M&A or Joint-Venture in the future. Holocom Networks is a company extremely compatible to PTSCs operations. Compatibality and the form of acquisition (stock & cash), would categorized it as a Vertical Acquisition. It can b called an Acquisition or Merger, depending on the form of the financial settlement. (Acquisition-Cash. Merger-Common Stock) Does anyone know of an OTC company that has been involved in a LOAN of hundreds of thousands of dlls. to a PRIVATE company..? If you do, please post it. I have looked and didn't find one. I'm almost sure, that there is none. PTSC is NOT in a financial position of "lending" cash to other companies, especially when PTSC is in a stage of development itself. Not even at 2% above prime rate. So, it becomes very obvious that Mr. Pohl is playing "The DaVinci Code" with this entry in the 10Q. I'd say that this smells like a type of earnest money for a possible acquisition in the very near future that will be payable in Cash and Treasury Stock. The beauty of this loan is the collateral : "The line of credit is collateralized by the patents and trademarks of Holocom Networks". Payment forfeiture and we'll have a second family of patents added to the Ignite Fam. My limited reseach on Holocom, tells me that the company originated with a government SBA loan or Federal grant and it appears that the total investment can be something that PTSC can easily absorb with its present cash balance and its treasury stock. Another important thing is that PTSC doesn't have to worry about the "Antidilution clause". Since, if this M or A was to take place, we would not go over the 10% cap. Consequently, PTSC is not required approval by S&L. Here is where the $700,000 loan plays a major role. Was this sum intended to keep the acquisition price under the 10% cap..? I say yes. Why 700 thou and not 500, or one million, or 1.5 mill...? The approximate time that it would take to finalize an M&A is approx. 9 months. Based on statements in the two previous 10Qs concerning possibilities of an M&A, I would think that PTSC and Holocom have been negotiating for the last six months. As in the past, a Powerful PR(s) will signal the end of this phase and the begining of the next one. $2.25 or higher can be realistically achieved way, way, before May. IMO Does February bring any Memories.....???? The Momentum from the 0.50s to 2.25 was uncontrollable. It can repeat itself again, but this time stronger fundamentals, financials and transparency will make the s/p alot more solid. (No more Debentures and only a few million warrants). Similarities between PTSC and Holocom will follow.