Ann: Trading Halt, page-63

Chief,

""Cleary I’m not wrapped about the timing of CR but Jesus the way a few are carrying on youd think this mob just went belly up. ""



In relation to cap raisings one of the responsibilities management has, is to raise money at the best possible price it can, to avoid unnecessary dilution.
Timing is everything when trying to maximise the best possible price. ECS was on the verge of having a serious breakout yesterday and shareholders who have been holding on for a very long time were robbed of a major pay day. CPH managed to climb to 47c yesterday on the back of 537 million shares traded. A 100% rise during the day compared to where it finished the night before. That is some rise when you consider it had already gone up 8 times in the past couple of weeks. What a ride it has been and for those shareholders who have been patient they finally got rewarded in spades..
One can only guess what share price appreciation ECS would have experienced given it's low market cap and the very strong day before the trading halt. 213 million shares traded the day before the Halt was announced . Only 30 million traded the day before that. So I guess it's fair to say the market had signalled it was ready to give ECS a major re rating.

Management made a mistake by not reading the market correctly with a series of MAJOR ANNOUNCEMENTS made recently that will change the cannabis landscape forever.
Whatever the cap raising is, at whatever the price, I would suggest to you that half of the amount of shares issued in this raising could have been achieved with the same money raised which ultimately has a major impact on the dilution effect. If I am a long term shareholder in any company I expect management to act in my best interests . This was not achieved in my opinion.

Given one of the directors was an ex broker makes the timing even more confusing. One would have thought he would have been able to read the present interest in cannabis stocks much clearer.

An opportunity was clearly lost.


Cheers.