November 1st, 2021 update.
This update is from a letter between Lloyd one of our managing partners and Lou who is our contact at MetroConnect (MC).
Lloyd had a long conversation with Lou end of October, the following was the conversation:
First: Lou was optimistic about offer in October. It will get done in November because of other things that are going on.
Second: MC is booking business on a daily basis. At this point they are primarily doing two things.
- One is monitoring holding ponds for municipal water systems. All should be monitored. Quite a few are not at all. Most have some system that is not much use. Lou said that putting monitoring systems on 1% of US ponds would net them profitable revenue well in excess of $100 million.
- The other is monitoring shut down oil and gas wells. This has to be done. Usual method now is site visit. This is very expensive and frequently does not give good results. Another note on the business side. They did several test sites before they had their current hardware/software approach. This was done be contractors and cost was over $100,000 per system. With their new chip gateway system, cost is about $2000 and is done by one person in less than a day.
Third: They are talking to institutional investors again. Completely different conversation this time. They are planning to sell a minority interest to someone for a good profit and still retain stock in the company for a long term investment. This investment should occur in the first quarter of 2022.
Lou will call me at the end of each week until we have something from them.
Some clarification on "institutional investors".
The idea is for MC to get some cash to pay some people and we are some of those people.
MC is a private company and ideally but not for sure yet we, the investors, should get something of value soon where as some of it can be turned into liquid cash.