By Devika Patel
Knoxville, Tenn., June 10 - Ecology Coatings, Inc. sold another $20,000 of 5% cumulative convertible preferred stock to Equity 11, Ltd. on June 10, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
Equity 11 now holds $336,000 of the preferreds.
The preferreds have a liquidation preference of $1,000 each and a conversion price of 20% over the average of the closing price of company's common stock for the five trading days prior to each investment.
The company can force conversion beginning May 15, 2010 if its volume-weighted average stock price exceeds $3.00 per share for a continuous 30-day period.
The preferreds are callable beginning May 15, 2014 and putable beginning on May 15, 2016.
Equity 11 can make purchases under the agreement through Dec. 15, 2009. As long as Equity 11 owns any preferreds, the company cannot accept a financing proposal from another party unless Equity 11 is given the opportunity to provide financing under the same terms.
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: | Cumulative convertible preferred stock, series B
|
| Amount: | $336,000
|
| Shares: | 336
|
| Dividends: | 5%
|
| Price: | $1,000
|
| Conversion price: | 120% of the average closing stock price for the five trading days prior to each investment
|
| Call option: | From May 15, 2014 onward
|
| Put option: | From May 15, 2016 onward
|
| Warrants: | No
|
| Pricing date: | May 15
|
| Settlement date: | May 15 (for $276,000); May 27 (for $40,000), June 10 (for $20,000)
|
| Stock symbol: | OTCBB: ECOC
|
| Stock price: | $0.50 at close on May 14
|
| Market capitalization: | $16.12 million
|
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