Replies to post #50108 on EcoloCap Solutions Inc. (fka ECOS)

[Jabez Advisory]

Thank you for taking the time for the explanation. Maybe I'm dense this morning but your explanation seems to support my concern doesn't it?

[deal guy]

DS the other way this can happen ECOS due to their capital structure involves note transactions. Two ways:

1) Note holder knows it is coming into shares. it wants to hold the price at 1. it hires MM 1 to sell shares in a short to MM2 which has a buy from affiliate of note holder. The short is then unwound by reversing the first sale. You get multiple days of high volume with no real activity

2) Note holder is going to get shares on conversion. Under the note agreement they are acquiring shares at 40% to 60% of market. They can sell to MM at less than market and still make a profit. The MM now has shares 1 or slightly below which it can then sell into the market.

It looks like Fife (Tonaquint) has used approach 1 over the past 12 months.