Ann: ECS to execute expansion plans following $4m Placement., page-76

I haven’t had a non-political response to my questions surrounding additional sources of financing other than “Banks have been burnt by the sector”. There hasn’t actually been any solid confirmation that the seeking of an extension to the NAB facility was actually rejected. It’s like they suspected NAB wouldn’t increase the facility, assumed they would say no and didn’t worry about asking. As I have said, I don’t believe that there was fair, reasonable or any effort at all so seek funding other than through an arranged capital raise via sophisticated investors.

I can’t recall who it is, but they said just after the initial call that it’s a difficult market to raise capital in etc etc. I am relatively confident that person , who hasn’t been involved in any ECS conversations until that post, was part of the raise itself.

If you don’t believe that anything abnormal has taken place then I don’t think your market awareness is overly refined. I’m happy to disagree, but I’m happier to be educated. So far I haven’t been educated on how this raise was necessary or definitely our only option. If someone brings to me a ‘fast-traced’ expansion plan different from what was in place months ago, then I might be slightly persuaded. But running a small scale heat/lighting experiment to optimise yields, getting a good result then having to install more of them is far from a new and revolutionary step in ECS business model.