EcoSave downgraded

Ecosave Holdings (ASX: ECV) has been downgraded to sub-investment status. Financials were always shaky, but we made a small initial investment based on its light green credentials.

At the recent AGM, management answered our questions about future capital raisings saying that there were no such plans for the immediate future as funds were not required and the interests of existing investors would be considered. Now they have announced an institutional capital raising at a 10% discount to the current share price, plus the CEO is one of the beneficiaries. We are looking to sell.

NOTE: our shares have been disposed of at $1.56.