ECS news, page-2

The GM is on March 2 (Tuesday) so I'm doing a little digging. I note the bellow from the Annual Report.

Looks like there were 42m performance rights issued on the formation of the new company - mostly to Alex Keach
And a further 131m likely if performance goals are met as per the "consideration" bellow. (Looks like 1 right = 1 share)

Looks like roughly 661m shares on offer now + 100m for the Murray Meds deal + 174m via performance rights (if all achieved) plus options ... so roughly 934m shares in 4 years.

Therefore a Market Cap of say $250m will create a SP of 26c, or a MC of $400m SP at 42c.

In four years if the goals are hit. Interesting.

Still - nice to have clear targets ... this has really helped define my approach to owning ECS shares.


Contingent Consideration
During the period the Group assessed the probabilities of the contingent consideration being payable with
respect to the reverse asset acquisition of ECS Botanics Pty Ltd occurring on 11 July 2019. The consideration
comprised of:
131,250,000 Performance Rights that were issued as part of the Acquisition Consideration.
The Performance Rights vest subject to the below revenue milestones:
43,750,000 Performance Rights (‘Milestone A Performance Rights’) will convert into Shares upon ECS achieving
an annual revenue in any financial year of $1.00 million within two years of the Company’s readmission.
43,750,000 Performance Rights (‘Milestone B Performance Rights’) will convert into Shares upon ECS achieving
an annual revenue in any financial year of $2.50 million within three years of the Company’s readmission.
43,750,000 Performance Rights (‘Milestone C Performance Rights’) will convert into Shares upon ECS achieving
an annual revenue in any financial year of $10.00 million within four years of the Company’s readmission.
Management have applied judgement to whether the achievement of the milestones are possible. While the
achievement of the milestones is possible, it is currently not probable and so no value has been ascribed to them
and that these will be reassessed at each reporting period.