Midwest Energy Emissions Corp. (OTCMKTS:MEEC) Makes Another Impressive Jump
tags: MEEC
Midwest Energy Emissions Corp. (OTCMKTS:MEEC) climbed another 11% up the charts yesterday, and at this point it may seem that the ticker is ready to step over the dollar threshold today and that there is nothing to stop it from there on out. But is that really the case?
True, when talking about MEEC one would be remiss not to mention that it is one of the more financially sound entities to be found on the OTC Markets‘ QB tier. Its latest financial report, for Q1 2016, reads something like this:
- Cash and cash equivalents – $478 thousand
- Total current assets – $4.6 million
- Total current liabilities – $8.3 million
- Revenues – $3.3 million
- Net income – $908 thousand
Sure, the cash MEEC has on hand is not much, but everything else seems be fine, right?
Well, not quite. Investors are advised to note another important detail of the company’s report – namely that MEEC’s total convertible notes payable before discount and debt issuance costs total at a staggering $12 MILLION.
A bit more reading reveals that $10 million worth of those convertible notes that can be transformed into shares of the company‘s common stock at a rate of $0.5 per share. Sure, that price was reasonable back in the end of 2013, when the MEEC was hovering around the half dollar mark, but now that MEEC stock has become almost twice as expensive, said debt has become a serious threat to investor value.
Those are just some of the issues that should be taken into account when considering MEEC stock. As usual, we advise diligence and care when dealing with volatile OTC Markets tickers.
