Don't pop champagne yet... check cash flow and liquidityDon't be popping champagne yet. There is still a big hurdle to get over for this company on a liquidity perspective. I bet they are back down to around $10mm in cash balance (ex-restricted cash) at Sept 30, 2019. Yes they did a $13mm+ convert in September. However, cash flows from operations are probably going to be around negative $6-7 milllion. Last quarter WMD benefited from collecting on $5mm+ on HST receivable, plus stretching AP. Changes in NWC should be a use of cash and not a source this quarter and going on, as WMD harvests and inventories product. There is probably another $2-5mm in investments/capex in the reported quarter. Conversion Date on the debt is also creeping up in Jun 2020, where principal repayments start on the debt + EBITDA covenants.
Taking into account the above, I would bet cash balance is closer to $8 million as of Nov 30/19.
Thanos "snap".