By Susanna Moon
Chicago, Feb. 27 - Ecology Coatings, Inc. sold another $40,000 of 5% cumulative convertible preferred stock in a $5 million private placement with Equity 11, Ltd. on Thursday, according to an 8-K filed Friday with the Securities and Exchange Commission.
The investor also received an additional warrant to purchase 20,000 shares at $0.75 per share and now has warrants to purchase 1,099,500 shares at $0.75 per share.
The deal priced for $5 million on Aug. 27. The company settled an initial tranche for $1.26 million on Aug. 28 and sold $750,000 more of the preferreds on Sept. 26.
The preferreds were sold at $1,000 apiece. Equity 11 bought 1,260 preferreds in the first tranche, 750 preferreds in the second and 40 preferreds in the third.
It may buy additional preferreds over the next few months.
The preferreds are convertible into common stock at $0.50 per share. On and after Aug. 25, 2009, the preferred stock will be subject to mandatory conversion into common stock if the volume-weighted average price of the company's common stock exceeds $3.00 per share for a continuous 30-day period.
The company may redeem the preferreds on or after Aug. 25, 2013. There is a put option after Aug. 25, 2015.
Based in Salt Lake City, Ecology Coatings develops nanotechnology-enabled, ultra-violet curable coatings that are designed to drive efficiencies and clean processes in manufacturing.
| Issuer: | Ecology Coatings, Inc.
|
| Issue: | Cumulative convertible preferred stock
|
| Amount: | $5 million
|
| Shares: | 5,000
|
| Price: | $1,000
|
| Dividends: | 5%
|
| Conversion price: | $0.50
|
| Call option: | After Aug. 25, 2013
|
| Put option: | After Aug. 25, 2015
|
| Warrants: | For 1,099,500 shares
|
| Warrant strike price: | $0.75
|
| Investor: | Equity 11, Ltd.
|
| Pricing date: | Aug. 27
|
| Settlement date: | Aug. 28 (for $1.26 million), Sept. 26 (for $750,000), Feb. 26 (for $40,000)
|
| Stock symbol: | OTCBB: ECOC
|
| Stock price: | $1.13 at close on Aug. 27
|
| Market capitalization: | $16.12 million
|
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