Patriot One Technologies Inc (OTCMKTS: PTOTF) has signed a substantial reseller agreement at a time when it is in dire need of groundbreaking catalysts to avert further slides in the market. Surging short selling pressure has been the order of the day, a tailwind that has resulted in the stock shedding a substantial amount of market share.
Patriot One Technologies Inc Price Analysis
However, the inking f a deal for the deployment of the Company’s PATSCAN VRS Solution could be the catalyst to fuel a bounce back after a steep correction. In addition, the Company is fresh from inking a strategic partnership with defense contractor Raytheon Canada Limited to extend the development of the current threat detection technology and product pipeline.
The stock has since started edging higher as investors react to a flurry of positive development that underscore long-term prospect. A bounce back off the $1.50 mark has opened the door for the stock to make a run for the $1.65 mark, the immediate resistance level standing in the way of further upside action.
A surge-followed by a close above the resistance level should open the door for bulls, who have been on the fence, to come back in and help in pushing the stock back to this year highs. Conversely, a sell-off followed by a close below the $1.45 support level could result in the stock plunging lower, in continuation of the emerging downtrend.
What Does Patriot One Technologies Inc Do?
Patriot One Technologies casts itself as a technology company engaged in the development and commercialization of systems used in the detection of concealed weapons while leveraging radar technologies. Its lead product is the PATSCAN CMR a radar concealed weapons detection system used to combat active shooter threats.
PATSCAN VRS Reseller Agreement
Patriot One Technologies is fresh from signing a binding reseller agreement with West Virginia-based Cramer Security Investigations, a development that continues to support price action activity. The agreement paves the way for the Company to distribute its PATSCAN VRS commercial units for an initial term of five years.
Under the terms of the agreement, Cramer has acquired an initial 3-year lease of the solution as a first phase approach. Cramer has also committed to the deployment of at least 150 PATSCAN VRS systems, including software license, maintenance, and support.
Patriot One Technologies stands to generate as much as $6.3 million as the minimum yearly commitment from the deal with Cramer security.
“Cramer Security has long been a supporter of Patriot One and its mission to provide innovative threat detection and counter-terrorism solutions for safer communities. Adding PATSCAN solutions to our current and future clients’ security technology infrastructure will enable our 500+ officers to better protect their customers, employees and properties from the horrific terrorist and lone actor attacks our communities are witnessing,” stated David Utt, Vice President of Cramer Security.
Raytheon $3 Million Financing
A deal with Cramer comes high on the heel of Patriot One Technologies inking a strategic partnership with Raytheon Canada Limited, a subsidiary of Raytheon Company. The defense contractor has since agreed to fund Patriot One Technologies to a tune of $3 million in non-dilutive cash financing.
The funding is to go towards enhancing the development of the PATSCAN CMR as well as any future marketing initiatives. The capital injection could not have come at a better time as Patriot One Technologies is working round the clock to deliver the PATSCAN VRS solution to the market place.
“We are thrilled to announce this strategic partnership. This financial support definitely signals the serious nature of our vision to create a world safer from acts of violence,” explained Martin Cronin, CEO, and President of Patriot One.
Patriot One Technologies Inc has achieved significant progress from the development of its proprietary technology to its deployment in real-world situations. The signing of reseller agreements paves the way for the Company to generate significant value after years of investments on research and development.
The Company closing a non-dilutive $3 million financing also underscores acceptance of the PATSCAN VRS solution as a reliable means of detecting concealed weapons. In our view, the current price level presents an ideal opportunity to buy the stock at a discount given the Company’s tremendous potential with its flagship PATSCAN VRS solution.
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Disclosure: We have no position in PTOTF and have not been compensated for this article.