Published on 5/1/2012 in the Prospect News PIPE Daily.
Ecology Coatings wraps $60,000 tranche of $2.4 million preferreds sale
Deal with Fairmount offers 5% convertible preferreds at $1,000 apiece
By Devika Patel
Knoxville, Tenn., May 1 - Ecology Coatings, Inc. settled a fifth $60,000 tranche of a private placement of 5% series C cumulative convertible preferred shares on April 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company raised $1.05 million in the $2.4 million deal on March 9, 2011, $100,000 on April 12, 2011, $100,000 on July 5, 2011 and $30,000 on April 13.
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 and 100 preferreds in each of the second and third tranches. The company sold 30 preferreds in the fourth tranche and 60 preferreds in the fifth.
The preferreds are 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 Warren, Mich., 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 dates: | March 9, 2011 (for $1,045,000), April 12, 2011 (for $100,000), July 5, 2011 (for $100,000), April 13 (for $30,000), April 26 (for $60,000)
|
| Stock symbol: | OTCBB: ECOCD
|
| Stock price: | $0.18 at close on March 9
|
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