wbart, my guess is that the major shareholders of ADES as well as the other joint venture partners want to flip refined coal so that they can get their cash now. Since they want a non-taxable event it appears that they will "merge" refined coal with another company and receive payment in highly liquid stock.
The royalties that ADES receives from Refined Coal should be enough to keep ADES going until it can get some new businesses up and running.
(1) You don't take a cake out of the oven until it is completely baked. (2) CSS is holding onto its cash and the company is using it cash inflow to support the emissions control segment.
All in all, a positive update. Got a bridge loan from deep pocket shareholders. Provided a time horizon for getting back on NASDAQ. The increase in royalties from CCS was a nice surprise. Did I miss anything?
Probably most long-term shareholders are totally exhausted by this long drawn-out drama (tragedy!!!) and are not eager beavers when it comes to posting about predictions about the bright future of ADES.
The folks who are moving the share price down are going to do what they want to do regardless of the number of shares outstanding. Probably the only way to stop this slide is for some upbeat update that has some meat on its bones.
md841, after reading some of the Pittsburgh business stories about the BCSI situation, I realized I was wrong about why the company is pulling the plug on the fabrication aspect .It has nothing to do with the lessor. My take on it now is that they have constructed all or most of the DSI units they have contracted to supply and that there probably is not enough business in the pipeline to support the 100 fabrication employees.
While I'm surprised that the share price has dropped this low, the volume has been light and the shorts are covering. Yes, I'm still long and am in for the long haul.
As for the mercury emissions business, I would not assume that it is a long-term earnings drain. It might be short-term but they sold a lot of AC and DSI equipment and those contracts should be finishing about mid-2016. Once MATS gets back on track I expect the M-Prove market to firm up. The gross margin on M-Prove is very high so even limited market penetration would be significant.
You are right that the RC biz is what is keeping this company going, at least for now.
md841, the pattern appears to one of making sound business decisions to improve profitability. I bet that the BCSI was able to lease the 190,000 sq fr fabrication facility for a song during the Great Recession and now the landlord is jacking up the rent. Looking at the photos of the place, I doubt that BCSI is big enough to justify so much space.
You need to re-read the update. The CEO stated that spending for the audit will return to normal sometime between now and the end of the year. The 'bridge loan" is for increased liquidity until the middle of 2016 when the orders for mercury control equipment are completed. At least that is how I read it.