Note that we still generated $20m in revenue over the FY, this...

Note that we still generated $20m in revenue over the FY, this is nothing to be taken lightly. Given the fluctuating nature of agricultural based receipts, we should expect a substantial increase in cash flow next quarter with the sale of the harvested and processed products. Clearly some downward pressure on margins given the reduced wholesale price point of the product. But, it remains that FY revenues have increased from $15.8m to $20m, a 30% YoY increase in revenues. Every aspect of the company in growing. And one would imagine that running at a $1.3m loss for the FY is purely based on better positioning for future income. And I would be very surprised that when the annual drops, if we had less than $1.3m in inventory.

VesiSORB expected to be operating within this quarter (next 2 months) and this will be a defining factor for ECS. A competitive and exclusive edge that will ultimately set them apart from local and global competition.

The fact is, medicinal cannabis is growing exponentially. Those local companies that can keep themselves liquid will flourish.

ECS is still in their expansion phase. Understand that despite a cash flow negative quarter, it will show in the Annual that we sit on a stockpile of inventory ready to be deployed and used in contractual commitments and increases. New products, new strains, increasing facilities and production capabilities. The pathway back into cash flow positive territory is inevitable given the scale of the ECS facility alongside clear long term benefits of increased productivity measures in place.

IMO once the VesiSorb product range is fully approved, there will be significant global interest in the brand and the clear undervalued nature of the company. Very rarely you see companies operating in industries with a CAGR of 25%+, able to increase bank funding and able to raise with private equity. If there was any danger of ECSs future and their ability to repay debt, the bank would not lend. And in all honesty, the bank would not be lending if they didn’t have complete confidence in ECS.

GLTAH, on the surface a loss is a loss. But understanding why and positioning ECS for future growth is pivotal and necessary to be the dominant player in the Aus Cannabis industry.