From ECS investor Hub ECS BotanicsASX:ECS18:09PM...

From ECS investor Hub

ECS Botanics

ASX:ECS

18:09PM 04/10/2023

Firstly and importnantly this is not a new resolution It was implemented 3 years ago and it lasts 3 years, so we are re adopting a new plan which is the effectively the same (same max 15%). You may also find value in knowing it is a fairly standard plan (if you look at Cann's AGM resolutions they are very similar). Please refer to page 15 of our AGM Notice as there is quite a bit of detail there.

The purpose of the plan is to:

(a) assist in the reward, retention and motivation of Eligible Participants;

(b) link the reward of Eligible Participants to Shareholder value creation; and

(c) align the interests of Eligible Participants with shareholders of the Group by providing an opportunity to Eligible Participants to receive an equity interest in the Company in the form of Securities.

The 15% relates the number of share that ECS can issue under the plan over the next 3 years. The 166m shares to be issued under the plan is 15% of ECS’ fully paid ordinary on issue.

Although we have used this very sparingly having a means of engaging employees to assist in driving shareholder value rather than just paying cash bonuses or large salaries is a very effective way of increasing discretionary effort and building retention and thats why companies like ours have these facility. Its also tax effective and that is why an employee may nominate a spouse to get the shares rather than taking them directly.

I hope this makes more sense.

Nan