By Devika Patel
Knoxville, Tenn., June 10 - ECO2 Plastics, Inc. raised $6.72 million in a private placement of its series B-1 convertible preferred stock on June 4, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 336,240,039 preferreds at $0.02 each.
The preferreds are convertible into common shares at an initial conversion price of $0.02. They pay dividends of 5%, subject to adjustment.
Proceeds will be used to buy proprietary liquid carbon dioxide cleansing equipment, to reduce trade payables, to repay a short-term note, to fund operations and for working capital.
ECO2 Plastics, based in San Francisco, has developed a system that cleans post-consumer plastics, without the use of water, at cost savings versus traditional methods within a closed-loop system.
| Issuer: | ECO2 Plastics, Inc.
|
| Issue: | Series B-1 convertible preferred stock
|
| Amount: | $6,724,801
|
| Preferred shares: | 336,240,039
|
| Price: | $0.02
|
| Conversion price: | $0.02
|
| Dividend: | 5%
|
| Warrants: | No
|
| Settlement date: | June 4
|
| Stock symbol: | OTCBB: ECOOE
|
| Stock price: | $0.05 at close June 4
|
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