The Warren-based advanced, earth-friendly coatings manufacturer Ecology Coatings Inc. (OTC: ECOC) said Monday that it has received conditional term sheets from a number of individual investors for an investment totaling $2.4 million.
The investment will be made through the issuance of convertible preferred shares which can be converted to common stock. The collective term sheets have not been approved by Ecology’s board of directors, as the board currently lacks a full complement of directors due to the resignation of Rocco DelMonaco. Ecology anticipates filling the vacancy by Sept. 15.
The investment is subject to the following primary conditions:
* Ecology must reduce its outstanding debt to $750,000
* To minimize the dilution to shareholders and to ‘clean up’ the capital
structure of the company, Ecology must convince large shareholders to return eight million shares of common stock to the company
* A due diligence period of 30 days
“This additional funding is necessary to accelerate our marketing efforts to reach more customers and invest in technical resources to support growth of our exciting technology,” Ecology Coatings CEO Bob Crockett said.
Ecology Coatings develops and licenses ultraviolet curable coatings. Since they can be cured with UV light rather than heat, they significantly reduce energy costs and increase manufacturing throughput. The company produces solvent-free coatings, which eliminate the escape of harmful solvents into the atmosphere during application.
Headquartered in Warren, Ecology Coatings has a development and prototype lab in Akron, Ohio.
More at www.ecologycoatings.com.
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