Hi HN2. Attempting cut and paste as requested and as follows:
The last time we wrote extensively on Patriot 1, it was to discuss where their product would fit into a security eco-system. It was, and remains, our view that PATSCAN will be a very cost-effective tool in helping to increase security in many public venues.
Since late October, the shares of Patriot (Ticker: PTOTF in the US) have been a great performer, moving from $1.14 to a recent high in excess of $2.00. Fundamentally, the Company has been executing on their business plan as well. Today we will look at the recent accomplishments of the Company as well as discuss some upcoming catalysts for investors to look forward to.
Fully loaded to execute
Most recently, Patriot has closed on a significant financing. With the recent addition of over $25 million to their balance sheet, the Company has positioned themselves financially to deliver on their future success. This is important as demand for their product is lining up and Patriot needs to be able to deliver rapidly and in scale once they begin commercial delivery.
It’s also important to note that this financing shows the level of investor interest in Patriot. The deal was fully over-subscribed and done through Canaccord Genuity and GMP Securities, two strong Canadian investment banks.
Like most secondary offerings, it was done at a discount, but the close of a deal with excess demand should put a floor in the shares of Patriot 1. Technically, it does appear that the stock has moved down to its trendline and is ready to start heading upwards again. It should also be noted that the Company moved onto the OTCQX as well, which should increase their visibility with US investors.
Early adopter integration ongoing
After receiving FCC approval last fall, the next step for Patriot, operationally, was to get the system out in the field in early trials. These trials will enable the Company to more rapidly develop the Artificial Intelligence (AI) software that powers the weapon recognition aspect of the system. Just having the hardware approved was not enough to go to market; the system learns in real time and that AI component needed to gather real world experience.
Westgate Las Vegas Resort and Casino is the first and most important trial installation that Patriot undertook. They have been running steadily there for several months now, with the AI learning and improving on a daily basis. From what I gather, the Company has been having success with this and is going to be moving on to more trials in other locations soon.
Taking them to these trials are their security system integrator partners. Major, multi-billion dollar, integrators are looking to place PATSCAN in some key customer installations so that they can evaluate the system themselves, along with understand the installation process and how it fits in their security sales arsenal. My guess is that we’ll see some more partnership announcements around these trials with large, brand-name companies.
All of these efforts are pushing towards the goal of going to market with their product sometime in the summer, possibly even before the end of Q2. I believe that we should expect to hear announcements regarding the trials and commercialization in the near future. And, once they hit commercialization, look out; the customer pipeline has been described to me as “INSANE!”
New hires demonstrate the attractiveness of the platform
I’m a firm believer that talented individuals, particularly in this job market, have their choice of jobs. While many investors believe that management is the key factor in the future success of a company (I certainly do believe this), it is also true that successful companies attract good management.
Patriot 1 has been growing rapidly as they scale up staff in anticipation of commercialization. The personnel that they have hired in this ramp up are very impressive. I won’t go into detail about the recent additions (read the PR if you want to learn more about them), however it should be stated that the talent level of recent hires is quite high.
In addition, when you look at their backgrounds, it’s readily apparent that Patriot is focused on production and supply chain improvements; a give-away that they expect to be moving lots of product in the near-future. As I said, sometimes the hires show you that the company is going to be successful.
At this time, I’m very excited about Patriot One. The Company has a strong balance sheet, with excellent firms backing it. They are about to start revealing some information about their early adopter trial installations, and move towards commercialization. The Company is about to hit that inflection point, and the stock appears like it is ready to lead the charge.