EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

The increase in shares is to allow all of the existing debt to be converted into ECOS shares. They will need to do another share increase to allow LSR to exercise their options. Remember LSR has the right to buy 5 1/3% of the outstanding shares by acquiring shares directly from ECOS. ECOS won't have enough unissued shares post the debt recap to meet its obligation to LSR. My guess is another increase in A/S toward the end of the year.

I can say with virtual certainty that ECOS and LSR will not merge. If LSR acquires anything it will be ECOS BioArt JV.