ECS Price Action, page-2291

Let's take a quick look back at what has transpired so far during this sell-off period.

AK initial holding of 100M units.
Liquidated 50M @1.5c off-market. (6.6M to Nan, 3.3M to Jeremy King, 40M to ???).
Bell's holds 20M options expiring in 18 months with a strike of 3.3c for the placement (Payment for managing the placement, nil cash paid for the raise facilitation).
181M units issued as part of the raise at 2.2c (now at 28% premium to todays price). With Nan indicating that none of these shares have been sold.
Total sales/trading volume of now over 55M since ECS announced the initial off-market trade.

To be a substantial holder, one must have 63.3M units. Nobody has yet met this threshold.

Make whatever inferences from this as you will, I will make my unsubstantiated and purely opinion based claims.

That is, IMHO, Bell Potters purchased the 40M off market at 1.5c for themselves as an institution and on behalf of their HNWI clients. They have then accumulated shares at these continually discounted rates from whoever/s (not naming names) has had the holdings to be able to accommodate the sale these shares. I suspect the top 20 holdings in the August Annual report will be vastly different to the previous reports (given that 20th Holding only accounted for 6m units). Bells requires the SP to double in the next 18 months from these levels to simply exercise their options, it is in their best interest to have this reach 3.3c+.

Plain and simple, ECS is not trading based on valuation and future earnings growth. It is just being traded.

Addit: As of May-2024, there are over 1 million current prescriptions active for medicinal cannabis in Australia. Global de-regulation is occurring, there is a shift in momentum away from opioids and conventional pharmaceuticals to cannabis and its' related products for health management. Global Cannabis CAGR is estimated to be at 24% until at least 2027.

Addit 2: 26th June 2023 we announced $11.7M contracts, one being Precision Pharmaceuticals with a $1.7M sale for a 12 month period with the option of being renewed, this is reviewed annually, se we may be expecting an update to this contract in the coming weeks. Perhaps this was a catalyst for the sell off? We had already extended the contract with MediCann from the initial 2 years to an additional 4 years valued at $24 mil.