EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

Kevin

It was always in the 14C that they were issuing 9.6bn shares to Fife to take out his debt. That is what drove the AS increase. They need to get current in order to issue these shares to Fife under the 14C.

Paying off Fife leaves them with about $3m in debt (mostly related to advances from shareholders and for accrued but unpaid salaries to management). I would assume that this would either reduce the equity purchase price or be cleaned up in any sale.

If you do the math if they sell the Company for $5m including assumed debt of $3m (which would be a frothy valuation for where they are now), each shareholder would get about $.0004. $2m divided by 20bn shares

Not sure that is a deal that ECOS would or should do, but it is hard to argue that the Company should sell for more than 7x sales (which this price would be). $5m divided by 670k in revenue for 2017 (one machine).

If they had more annual revenue and some profits you could argue for a higher valuation.

One other thing ECOS needs to earn profits of about $600k (almost all salaries to management) to breakeven. That is about 10 machine sales a year.

I think if they can book a lot more sales in 2018 and complete projects you could defend a sale in late 2018 for a better per share price.