From my perspective, the negativity stems from the performance...

From my perspective, the negativity stems from the performance of other ASX companies that have undergone consolidations. Some recent examples include WSI, ZLD, MOM, MDC, NUH, Ci1, TPD, MGT, THR, Ti1, KDY, MXC, GDA, TOE, RR1, ADX, WNX, FGL. In many of these cases, the share price went on to reach new all-time lows in market cap, despite management promoting similar reasons to ECS, such as ‘cleaning up the register’ or ‘attracting investors.’ Dont take my word for it go and check out the charts and mark the date they did a consolidation, what ended up happening mostly was new all time lows coupled with capital raises.

I have yet to see an example where a company’s market cap directly increased following a consolidation.

The reality is that the share price becomes more illiquid, which deters investors. Consolidations require time and money, create uncertainty, and are often unnecessary.

The reasoning provided by ECS, especially around 'tidying up the register,' remains unconvincing, as the register stays the same. The fact that management is pushing a rationale that doesn’t hold up is concerning.

Currently, ECS can move in 0.5 cent increments, allowing for 2.5% spreads, which is quite reasonable. Many blue-chip stocks have similar daily fluctuations . There are numerous companies like AGE, BTR, and AZY, with triple or quadruple the number of shares as ECS thats in the same price range, yet they have no issues raising capital and are trading well without the need for a consolidation, showing steady growth.

In my view, a consolidation isn’t necessary. If a company is fundamentally strong, it will be re-rated regardless of the number of shares in issue.

Examining the data on companies that have undergone share consolidations shows that their market cap often declines to new all-time lows and remains at those levels for months, if not years, for every 1 example you could show of it working I can show 20 that do not. Given this information, I think the real question is why would anyone choose to proceed with a consolidation?