Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-55

Markets will always act irrationally.

Theoretically, if ECS was trading at 4c with the exact same fundamentals and cost structure we currently have, there would be a sense of optimism and success in the company. Yet, we trade at 1.8c and sentiments and beliefs are changed, people target certain aspects of the company and devalue based on trading activity.

It can be difficult to look at a holding and see red, see a price drift and feel like things are going wrong. But to back in an investment thesis, understand a business and have an outlook beyond the intraday trading activity so what breeds solid investment.

Whilst a graph of trading activity can speak volumes, ECS, a micro-cap with low relative liquidity is Likey to be far more volatile, as we have seen here. One or two moderate exit positions puts us in our current predicament. But, also provides opportunity to average down and buy some exceptionally cheap shares. See opportunity when it presents, understand and back your investment thesis and hold for the future returns.

$22m market cap for an established, profitable, scaling, long term supply contracted, global supplier of high quality cannabis is outrageous. Look at the direction the industry is going, look at Aus and global CBD/THC prescription rates and the transition from opioids and mainstream pharmaceutical alternatives, look at real patient outcomes.