EcoloCap Solutions Inc. (fka ECOS)

[was Honey Badger]

Hi All (new and old) - Glad to see lots of diligent new peeps on the Board, along with some wise oldies and the regular post and run riff-raff. I haven't posted here forever (6+ months?), as the day job and "THE man" have been keeping me down. This is my only board I have posted on.

I also haven't been able to keep up on all the recent posts since the news came out last week on financing, so much of my ramble may have already been posted. Just wanted to share some thoughts from a long time long, who also was able to average down a bit sub 0.0004 over the past month. I keep vowing to NOT buy anymore until ECOS reports revenues and delivers, but can't help myself!

Not a flipper, MM, or much of a penny stock investor - just an investor that has loved and hated ECOS for a long time. Here's my humble take on recent events ... keep in mind, I have been foolish enough about this stock in the past to have bought stock at 0.25, so my opinion here might have the same value as some of my 0.25 shares But I also have some 0.0003's ... could never get the 0.0002's!

Many of us agree that the worst thing impacting ECOS today and in the past, is the Toxic Debt. But, as I have said for over a year, many of these start up penny stocks don't have any other choice.

Consider the recent CVP news. Most of you probably know that Tonaquint is owned by Mr. Fife. If you were CVP, would you loan money to a start up as a venture capitalist in the form of an unsecured loan, "angel money" or a unrestricted convertible loan with great terms. Heck, if I were a VC, the easiest money with the least risk is in a convertible where you get a 40% discount on the SP and no restrictions on WHEN you convert. Plus, 8% interest and payable on demand option. For that reason, I suspect at least some, if not all of the recent financing from CVP is through Tonaquint. That doesn't surprise or scare me, but I don't have my future riding on ECOS either ... just some 'Mad Money'.

Most of you probably got this, but I didn't see posted yet. I believe that from the filings of SC_13G from Tonaquint in April this year, and Asher just last week, were the main reasons for the huge dilution and add of A/O shares this summer. The major toxic debtors maxed out. Even if you only gave ECOS a loan for $100K in 2012, that is 500,000,000 in shares at 0.0002. The CDebtors get a 40% discount, so they easily could have been lower. THE FOLLOWING I AM NOT SURE OF, but it seems that the toxic debtors can't exceed 10% ownership, hence Ashers SC_13G's indicating the had 9.99% at something like 138+ million owned and 1.38 billion shares outstanding. (anyone with more info, please add) Since most Toxics' had either maxed out their ability to loan convertible debt to ECOS, or couldn't convert at new lows, everybody was locked until the huge dilution, that may have subsequently allowed for Toxics to convert at lows a few weeks ago. The Tonaquint can loan again as a sub of CVP, the announcement comes out, we get some new retail and other buyers, and the stock quadruples in a few days. Toxic waste doesn't usually hold risk, and as we all know, they sole into the recent spike.

Normally, I'd agree with those who say many of us are screwed, and that ECOS is just another company making Toxics rich. But, I think about the fact that ECOS does have a product that has reportedly been tested, is still in development stage, and has limited resources and access to capital. Nobody, including the Toxics are making as much money today, as they could be in the future if ECOS is able to deliver, and takes off. There hasn't been any insider trading to speak of, and the execs like MS stand to be filthy rich if they can deliver.

Still, I hate the Toxic Debt Death Spiral, but don't know what else is available to non-revenue pennies and sub-pennies. I saw "Something Ventured" on Netflix, and laughed when a VC in the 70's turned down financing a couple of hippes named Steve Jobs and Wozniak from the pre-silicon Valley who had something they called an Apple computer. He said Jobs smelled bad and was too arrogant for his taste, and didn't think the product would sell. BY NO MEANS THINKING OR EVEN HOPING THIS IS THE NEXT APPLE, but the documentary made me remember that even the behemoths started with a small number of people looking for capital to move their idea into production.

I optimistically gave ECOS a 5% chance of success when I first bought in, and I am still optimistic but realistic. If ECOS can use this recent influx of capital to report revenues, a trip to Vegas is probably in the cards for some of us. If ECOS fails to do more than feed the Toxic Debt monkey, keep the lights on and pay salaries come January, I don't think they'll be more than a handful of believers left, worldwide, and are likely finished.

What I'd like to know is, how much capital ECOS has to work with via this last round. In the past, it was only in the form of 100K-ish CD type transactions. That is enough to keep the lights on and pay admin expenses, take a few sales trips, etc., but presumably didn't leave enough capital to buy the materials and pay labor to build these expensive NPUs. Hence, ECOS reported contracts in the past, that may be waiting as MS reports. Some may have also expired. I know that a couple of years ago they reported revenue from 2 NPUs sent to Empress Energy in Chile (here is a link) http://www.businesswire.com/news/home/20110708005140/en/EcoloCap-Announces-Progress-Chile-Ukraine

Chile seems to have been testing. The odd part, was that I don't recall seeing any additional revenues from additive, if those machines are still in place in Chile, returned leases, etc.

Over the tears, the gaping hole in ECOS 8k and PR's have been in follow-up, communication and execution. I saw the CEO blog, and the commitment to weekly updates, and have only seen the finance news .. .has always made me wonder what is so tough about posting a couple of sentences, even if only to say that work is continuing. There was a 2+ month stretch of relative silence since the last communications before this recent news. I suspect that may have been necessary, but also know that the lull in news and dilution eliminated most buyers and drove the SP to historic lows .. which was good news for anyone holding unrestricted convertible debt a few weeks ago like Asher and Tonaquint.

So, best of all wishes and luck to all, no matter how it is that you make your coin. Very optimistically hoping that our CEO is just our 2013 version of a 70's hippie from the Valley ... who (liek me ) doesn't often bother to use spell-check

HB