Deal with Fairmount offers 5% convertible preferreds at $1,000 apiece
By Devika Patel
Knoxville, Tenn., March 14 - Ecology Coatings, Inc. settled the initial tranche of a private placement of 5% series C cumulative convertible preferred shares on March 9, according to an 8-K filed Monday with the Securities and Exchange Commission. It will raise $2.4 million and has already taken in $1.05 million.
The company is selling 2,400 preferreds to Fairmount Five, LLC at $1,000.00 per preferred. It sold 1,045 preferreds in the first tranche.
The preferreds will be convertible into common stock at $0.06 per share, a 66.67% discount to the March 8 closing share price of $0.18. The company may force conversion after May 15, 2012 and may redeem them after May 15, 2014.
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.
|
| Issue: | Series C cumulative convertible preferred shares
|
| Amount: | $2.4 million
|
| Preferreds: | 2,400
|
| Price: | $1,000
|
| Dividends: | 5%
|
| Conversion price: | $0.06
|
| Call: | After May 15, 2012
|
| Warrants: | No
|
| Investor: | Fairmount Five, LLC
|
| Settlement date: | March 9 (for $1,045,000)
|
| Stock symbol: | OTCBB: ECOCD
|
| Stock price: | $0.18 at close on March 9
|
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