WARREN, MI – Ecology Coatings Inc., Warren, MI, 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. Ecology’s Board of Directors has not approved the collective term sheets, 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, 2010.
The investment is subject to the company reducing its outstanding debt to $750,000. To minimize the dilution to shareholders and to clean up the capital structure of the company, Ecology must also convince large shareholders to return eight million shares of common stock to the company. The financing also requires a due-diligence period of 30 days.
Ecology Coatings CEO Bob Crockett commented, "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 Inc. develops nanotechnology-enabled, ultraviolet-curable advanced coatings.