Eco Ventures Group secures $15.3 million loan, placement of preferreds

Private funding group will provide company with capital in tranches

By Devika Patel

Knoxville, Tenn., Sept. 12 - Eco Ventures Group, Inc. said it will conduct a $15.3 million private placement of convertible preferred shares and a secured loan with a private funding group.

The investor has committed to invest in the company through a three-year 8% secured loan. In addition, the investor will acquire about 20% of the company by buying preferred stock at $2.50 per preferred. The preferreds convert to a total of 11.76 million common shares, which will be held in escrow.

This financing is expected to settle in three tranches. The first tranche will be for about $6.5 million and will close on Sept. 22. The second tranche will settle for about $4 million 30 days after the first tranche closes, and the third tranche will conclude for about $4.7 million 90 days after closing.

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 Groveland, Fla.

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