Published on 6/4/2012 in the Prospect News PIPE Daily.
Ecology Coatings seals $20,000 tranche of $2.4 million preferreds sale
Deal with Fairmount offers 5% convertible preferreds at $1,000 apiece
By Devika Patel
Knoxville, Tenn., June 4 - Ecology Coatings, Inc. settled a final $20,000 tranche of a $2.4 million private placement of 5% series C cumulative convertible preferred shares on May 29, according to an 8-K filed Monday 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, $30,000 on April 13 and $60,000 on April 26.
The company sold the preferreds to Fairmount Five, LLC at $1,000.00 per preferred. It sold 1,045 preferreds in the March 9, 2011 tranche and 100 preferreds in each of the April 12, 2011 and July 5, 2011 tranches. The company sold 30 preferreds in the April 13 tranche, 60 preferreds in the April 26 tranche and 20 preferreds on May 29.
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 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, 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), May 29 (for $20,000)
|
| Stock symbol: | OTCBB: ECOCD
|
| Stock price: | $0.18 at close on March 9
|
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