Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-15

I just threw together this Spreadsheet comparing the ASX listed cannabis cultivators, was going to include CPH but they havent released their latest quarterly and also dont have any cannabis cultivation operations in Australia:

This is made using figures from all the quarterlies put out by the companies since inception and include up to date cash balances and production numbers from latest quarterlies and presentations.



Feel free to share this table, I think its glaringly obvious when you look at this how undervalued ECS is. Spending a lot less to grow more cannabis. A lot more. And unlike LGP and CAN, we have other revenue streams, like hemp food products stocked in Woolworths and Coles.

Spare a thought for CAN holders who after more than 4 years, whilst burning through $9.43 million a quarter, still do not have their costly greenhouse up and running, are in debt to the tune of $35 million and do not have enough cash to get through another 2 quarters at current burn rates. Meanwhile ECS running a tight ship here with average cash burn of $1.55 mill a quarter.

ECS is currently growing more than 3 times the amount of cannabis CAN does, spent $16 million to get here as opposed to the $176 million CAN did, and our customer receipts are almost identical for the last quarter, but ECS has gotten here spending fractions of what CAN has in half the time, infact ECS is on the trajectory to be cash flow positive this year, whereas CAN does not even have a path to be out of debt within the next 5 years.

I think you can clearly see here which managment is better with their decision making, cash management and which company has a better future trajectory with more upside than downside, especially with ECS only valued at $32 mill. I know where I have parked my money in the cannabis sector in Australia, only a matter of time that this clear mismatch of valuations will last.