Deal is conditioned upon large shareholders returning 8 million shares
By Devika Patel
Knoxville, Tenn., Sept. 23 - Ecology Coatings, Inc. announced plans for a $2.4 million private placement of convertible preferred stock.
The preferreds will be convertible into common stock at $0.10 per share, a 42.86% premium to the Sept. 22 closing share price of $0.07.
Ecology may only use $750,000 of the proceeds to pay off its outstanding debt. Also, to minimize dilution to shareholders and "clean up" the capital structure of the company, Ecology said in its announcement that it must convince its large shareholders to return 8 million common shares.
Based in Salt Lake City, Ecology Coatings develops nanotechnology-enabled, ultraviolet curable coatings that are designed to drive efficiencies and clean processes in manufacturing.
| Issuer: | Ecology Coatings, Inc.
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| Issue: | Convertible preferred stock
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| Amount: | $2.4 million
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| Conversion price: | $0.10
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| Warrants: | No
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| Pricing date: | Sept. 23
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| Stock symbol: | OTCBB: ECOC
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| Stock price: | $0.07 at close on Sept. 22
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| Market capitalization: | $2.3 million
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