By Devika Patel
Knoxville, Tenn., April 15 - Ecology Coatings, Inc. raised another $21,000 in a $5 million private placement of 5% cumulative convertible preferred stock with Equity 11, Ltd. on April 14, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
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. It sold $40,000 of the securities on Feb. 26 and $80,000 in preferreds on March 27.
The preferreds were sold at $1,000 apiece. Equity bought 1,260 preferreds in the first tranche, 750 preferreds in the second one, 40 preferreds in the third and 23 preferreds on March 10. It bought 80 preferreds in the March 27 tranche and 21 preferreds in this one.
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, 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.
Equity also has received warrants in all of the tranches for a total of 1,151,000 common shares, which are exercisable at $0.75.
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: | After Aug. 25, 2013
|
| Put: | After Aug. 25, 2015
|
| Warrants: | For 1,151,000 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), March 10 (for $23,000), March 27 (for $80,000), April 14 (for $21,000)
|
| Stock symbol: | OTCBB: ECOC
|
| Stock price: | $1.13 at close on Aug. 27
|
| Market capitalization: | $19.3 million
|
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