Private funding group will provide company with capital by Oct. 28
By Devika Patel
Knoxville, Tenn., Oct. 13 - Eco Ventures Group, Inc. said its investor has requested an extension to complete a $15.35 million private placement of convertible preferred shares. The offering was announced Sept. 12 and is now expected to settle on Oct. 28.
On Sept. 12, the investor, a private funding group, committed to invest in the company through a three-year 8% secured loan. In addition, the investor agreed to acquire about 20% of the company by buying preferred stock at $2.50 per preferred. The preferreds would convert to a total of 11.76 million common shares, which will be held in escrow.
On Sept. 22, the investor decided that it would not complete the loan, but would finance the company through a preferred purchase agreement, which would consist of 6.14 million series B preferred shares at $2.50 per share, with an 8% dividend.
Proceeds will be used to execute the Eco Ventures Group's business plan and begin the process of qualifying for a national exchange.
The company is a precious metals explorer and producer based in Fort Lauderdale, Fla.
| Issuer: | Eco Ventures Group, Inc.
|
| Issue: | Convertible series B preferred shares
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| Amount: | $15.35 million
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| Shares: | 6.14 million
|
| Price: | $2.50
|
| Dividends: | 8%
|
| Warrants: | No
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| Announcement date: | Sept. 12
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| Pricing date: | Sept. 22
|
| Settlement date: | Oct. 28
|
| Stock symbol: | OTCBB: EVGI
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| Stock price: | $4.25 at close Oct. 12
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