Ecology Coatings, Inc. (OTC Bulletin Board: ECOC), a leader in the discovery and development of nanotechnology-enabled, ultraviolet-curable advanced coatings, today announced 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 September 15, 2010.
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
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."