East Coast Diversified does $2.5 million of equity financings

Investor buys $1.5 million of redeemable, convertible preferreds

By Devika Patel

Knoxville, Tenn., April 23 - East Coast Diversified Corp. said it negotiated two equity financings for more than $2.5 million with Ironridge Technology Co. including a$1.5 million sale of redeemable, convertible series B preferred stock.

The company settled more than $1 million of accounts payable, which Ironridge had acquired from company creditors, with common shares. East Coast Diversified said the transaction substantially reduced its liabilities.

The series B preferreds are convertible at more than 285% of the current market price. The company's shares closed at $0.0035 (OTCBB: ECDC) on Friday.

"This funding will help us continue the momentum we are experiencing with our businesses and manage growth more effectively; 45% of the payable funding is related to manufactured inventory that will help us accelerate sales and revenue," chief executive officer Kayode Aladesuyi said in a press release.

The Fort Lauderdale, Fla., company is constructing an entertainment center in Miami.

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