EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

JA

I agree personal attacks have no place anywhere on this Board from anyone and attacks on people's families (or former families) are even more uncalled for.

Just to make sure people aren't confused by the rest of your message.

The real debt of ECOS isn't $8m. The $2m derivative liability is only real if the notes are paid in shares. The real cash debt was $6m and has been $6m for a while.

The increase to $16m (with a derivative liability of $10m) was an error in their GAAP accounting and their correction back to $8m (with a derivative liability of $2m) was intended to correct that error.

The way to think about the derivative liability is that it is the potential dilution to equity holders from the issuance of additional shares on note conversion. Since they can't covert the notes to shares to sell it is now a phantom liability.