East Coast Diversified, a holding company with a portfolio of a diversified group of technology companies, today announced it has entered into two equity financings with Ironridge Technology Co., an institutional investor financing small-cap tech companies, for an aggregate of more than $2.5 million.
The funding enabled ECDC to significantly reduce liabilities by settling more than $1 million in accounts payable, with the remainder to be used for growth.
"This funding will help us continue the momentum we are experiencing with our businesses and manage growth more effectively, 45 percent of the payable funding is related to manufactured inventory that will help us accelerate sales and revenue especially with our StudentConnect business which require significant investment in equipments to be deployed to school districts," Kayode Aladesuyi, CEO of ECDC stated in the press release.
In addition, ECDC entered into a definitive stock purchase agreement with Ironridge to purchase $1.5 million in redeemable, convertible series B preferred stock, which is convertible into common stock of ECDC. Ironridge received no warrants. Ironridge has agreed to convert the shares at more than 285 percent of the current market price.
Aladesuyi said ECDC will now continue to progress its social media division, as well as several other projects.
"Ironridge is demonstrating confidence in our business plan and the direction of the operation, its decision and agreement to convert at a significantly higher PPS than current market price is indicative of this," Aladesuyi stated, "but more importantly, is that we can now accelerate the development of our social media division 'WetWinds' and other projects we are working on."
For more information visit eastcoastdiversified.com
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