EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

If you look at this from an LRS perspective their investment in ECOS Art is a free option. Invest $100 own 5% of the equity and get 50% of the margin on the purchases of units. They also get warrants that they can exercise if the stock ever moves up which could allow them to recoup their investment.

In addition their investment is not in ECOS, but into another entity so the past of ECOS is not their problem.

They have $100 (and the fees from their outside counsel) exposed until ECOS delivers the biodigesters. Not a bad deal for LRS.

I do find it interesting that LRS doesn't make an announcement of the ECOS Art deal. Obviously they don't see it as material as all of the other things they announce.