EcoloCap Solutions Inc. (fka ECOS)

[MaxDaniel]

ECOS - From ECOS Blog : http://www.ecolocap.com/blogs.php?id=87

February 6, 2014

I have been quite busy this past week (not on vacation), and I would like to address the issues raised in emails from shareholders. First, please address all questions to [e-mail]. We cannot address specific questions via individual emails. However, we will compile the questions and answer them in the proper forum at the proper time. Please keep the emails at least “R Rated”, and refrain from sending three or four emails at a time. This will ensure your email is read, and doesn’t end up in a spam folder. Many of the questions we receive are already answered in our blogs or emails. Updates on many of these issues will be addressed in future blog entries or press releases at the appropriate time.

It is claimed that ECOS is dumping stock and management is making a killing. It is important to understand how we got here today. In order to survive ECOS had to borrow. The method employed is called convertible debt. The lender has the option of converting their debt to shares. There is a minimum time of 6 months between the time money is borrowed and the conversion can take place. ECOS has no control as to when the lender can convert his debt to shares. Neither ECOS nor its management is selling shares into the market. Without ECOS assumption of debt we would not be in business today. No matter how harsh it may seem ECOS management is trying to protect the shareholder.

I would like to define the business parameters of EcoloCap. EcoloCap primarily markets technology based upon chemical additives.These include:

1)The NPU (Heavy Fuel Oil emulsion system).
2)The NPW (high fatty acid fats to biodiesel).
3)Esterhol (low fatty acids to biodiesel).
4)D-20 (kerosene emulsion).We do not sell the fuel output.

The customer produces the fuel from our equipment (if necessary) and the additive.We do not want or have the ability to set-up a distribution infrastructure necessary to distribute fuel. Our customers already have that in place. We will generate large revenues selling our chemicals necessary to make final product.Let’s draw a comparison. One can buy a printer very inexpensively. The manufacturer earns their money in selling the toner or ink for the printer. In our case our equipment only will operate with our chemicals. We make the real money selling the chemicals.


What is D-20? D-20 is not a fuel. D-20 is an additive that is added to kerosene in a 50/50 ratio. It is not the final fuel. D-20 is an emulsion of water, menthol and our additive (the additive is the secret sauce that holds the emulsion together).

How this pertains to our business, is that in Korea, the only companies that can sell fuel are licensed by the government. One fuel distributer may sell to 100’s of chicken farms. Another caveat is that in Korea water is not allowed to be sold in any fuel.What is the D-20 process? In other words, how does our business operate? The distributer picks up the D-20 from the factory. Say a farm will order 15,000 liters of kerosene. The distributer will deliver in two containers kerosene and D-20. At the farm the distributer will pump into the farmer’s tank 7,500 liter of kerosene and then pump in 7,500 liter of the D-20 additive. The distributer is not selling a premixed fuel with water.

When the D-20 hits kerosene a physical and chemical mixing reaction occurs and forms a new stable, emulsion of the D-20 and kerosene. This is the product that the farmer will then burn.


What is the status of D-20? As I stated before, we should be producing D-20 in February. We have plumbed all the equipment and the controller system and the controlling software is being tested. We are running samples of the additive, and the samples are subject to lab testing. The manufacture of the D-20 additive is a trade secret process and requires special equipment that we have designed. Obviously, it is important to test initial batches of samples to ensure the quality and consistency of the D-20 produced in our new facility. We will keep you informed as we move forward through the process.