Just to expand on this point, I only stumbled across OEC yesterday and still trying to get my head around the financial situation.
As best I can tell they have roughly $28.5m cash in the bank, but convertible notes to the value of $9.5m if they were cashed out rather than converted to equity. They also have about $17m in debt.
So what will OEC do with the cash? Obviously the debt isn't a huge issue right now given the cash/debt ratio, and while the convertible notes are frustrating, the 40c conversion price isn't a huge discount to the current SP (and are likely the reason the SP has made it's way down towards that level rather from 60c).
Obviously if management can't put the cash to better use they should just pay down all debt, but it seems management are confident of expanding the $12m contract with Insitu, which would require additional capital, likely for a production plant in the US.
Regardless, the company has caught my eye at the current prices.
OEC Price at posting:
46.0¢ Sentiment: Hold Disclosure: Not Held
