Fortunately or Unfortunately, the ECS raise is quite dissimilar...

Fortunately or Unfortunately, the ECS raise is quite dissimilar to other ASX small cap raises. Most small caps don’t raise during the following conditions: Positive cash flow, rapidly increasing revenue, relatively low SP (most will see a natural surge in SP given the aforementioned conditions before the raise). ECS raises red flags with the conditions and trading activity leading up to the raise. I’ll be quite surprised if there wasn’t external forces keeping the SP low so that Bells and associates could fill their boots with the freebies.

It doesn’t take away from having a path of rapid expansion, just that raising funds this way is just uneconomical and negligent of existing shareholder values. I still haven’t seen a solid response from management as to how they were unable to secure funds any other way. Director loans, expanding funding facility (which I doubt they approached), waiting until after HY results for a greater SP, raising at a premium where all shareholders see ECS should be.