Ecology Coatings Accepts Term Sheets for a $2.4 Million Funding

Warren-based Ecology Coatings Inc. (OTC Bulletin Board: ECOC), a developer of advanced coatings that cure in ultraviolet light, said Thursday that its board has accepted conditional term sheets from a number of individual investors for an investment totaling $2.4 million.

But there are major strings attached, including convincing existing shareholders to give up eight million shares.

The investment is to be made through the issuance of convertible preferred shares which can be converted to common stock at a price of 10 cents a share.

The investment is subject to the following primary conditions: 

* Ecology can only use $750,000 to resolve its outstanding debt.  
* 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's nanotechnology-based coatings offer energy consumption advantages over coatings that must be cured by heat, significantly reducing energy costs and increasing manufacturing throughput. The company produces solvent-free coatings, which eliminate the escape of harmful solvents into the atmosphere during application.

More at www.ecologycoatings.com.

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