ECS for some unknown reason remains the unloved step-child of...

ECS for some unknown reason remains the unloved step-child of the Australian Medicinal Cannabis industry.

We are clearly at an inflection point, I’m sure most active users here have read my recent analysis and forecasts.

I had a thought about a potential take-over of late, with a few economic signals pointing towards ECS being even more attractive than before. With the US expected to have multiple rate cuts and Australia looking to stay flat or post a hike. The AUD is currently quite weak to a lot of the major currencies, but expected to strengthen on the interest rates over the next few months. So for any potential US/EU/UK parties looking for an attractive buy, sooner rather than later would be far more discounted. Although I’m unsure what % of our contracts are listed in these currencies. So the $19.2m I had previously eluded to as Minimum contracted sales/year, could be 5-10% more valuable in 12 months time, if the AUD were to tip 70c/USD. Which isn’t unreasonable given that we traded 78c in March 2021 (a 16% premium to today’s pricing). A strong AUD as a whole places us in a far better position given our strong focus on exports. $19.2m AUD (speculating here) translates to $22.2m AUD if we transacted purely in USD and were to reach the 2021 levels. Not too bad considering nothing changes other than forex exposure.

Something to think about going forward, but overall, export conditions and the long term foreign contracts in place exposed to these conditions only works in ECS favour.

Eagerly awaiting these results, I’ve the champagne ready to pop if we manage to surpass $8m in quarterly revenue and an expensive dinner reservation in place if that tops $9m.

GLTAH