EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

Dutch

When i was at ECOS last month. I asked what they intend to o with the product. The person i talked to said they were going to market it as compost and not as fertilizer.

To sell "fertilizer" they need to register with the Illinois Dept of Agriculture, obtain a fertilizer license, be inspected annually by the Dept of Agriculture, do monthly reporting of sales of products any pay tonnage tax. There is a requirement to do laboratory analysis that delineates components of fertilizer (mostly NPK content measures). If you sell fertilizer in this State (or most States) this is a mandatory requirement. You cannot brand or hold yourself out as a fertilizer manufacture or as selling fertilizer unless you go through the license and reporting process. I know this quite well as I spent many years advising manufacturers and distributors in the fertilizer space.

The mulch produced by LSR is sold to landscapers and other customers (not retail). My gut tells me that in order to avoid entering into the regulatory web of fertilizer they will market this product as compost (unregulated) rather than fertilizer.

I am taking another field trip to LSR California Ave on Saturday morning. I plan to ask hat they plan to do with output. I have a mtg at the U of C so I will stop on my way down. Will post an update on Monday.