The financial position of this company has never been great,...

The financial position of this company has never been great, it's been called out on here over and over again that CAN is in a debt spiral and what's happening now is the final phase. Despite substantial debt repayments over the last 12 months the size of their debt has increased. The deal they've entered into to raise capital is really bottom of the barrel stuff e.g. where a company turns to when more respectable lenders have turned their backs. The SP will continue to set new all-time lows while the lender dumps their discounted shares on market. The minute NAB suspects they won't be able to continue to raise capital they will call in the receivers.

The market cap of this company is now sub $40m despite reporting total assets of $129m in FY23. Even if you take away the large debt they're carrying the company is still trading below the value of its assets. The reason for this is simply because the market doesn't believe the assets hold the value that management says they do. Cast your eye over to Canada where facilitites that cost >$100m to construct are being sold for ~$10m.

Auditors have also done their job and called out that there is a "material uncertainty which may cast significant soubt on the Group's ability to continue as a going concern". You'll never catch an auditor using langugage like "this is a dumpster fire", however the language they've used is pretty strong and clearly they are trying to convey a message of alarm.

I always believed the market cap of ECS would overtake CAN, didn't think it would be in the next 12 months though.