Friday, December 4, 2009

MedClean to land up to $7.5M from preferred stock deal

By Mass High Tech staff

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MedClean Technologies Inc. is lined up to receive up to $7.5 million from a sale of up to 750 shares of its Series C preferred stock to Socius Capital Group LLC, dba Socius Life Sciences Capital Group LLC.

Under the preferred stock agreement, the shares will be sold in one or more tranches. MedClean (OTC: MCLN) will decide when to sell the tranches, at $10,000 per share. Socius is also subject to receive five-year warrants, for each tranche, to buy stock equal to 135 percent of the value of the stock in the tranche.

MedClean officials said in a press release that the preferred stock purchase agreement will enable the company’s growth and expansion. In January, the company, formerly known as Aduromed Industries Inc., renamed to MedClean, marking the firm’s business plan to lead the $2 billion medical waste treatment market, company officials said at the time.

Bethel, Conn.-based MedClean, founded in 1997, develops systems to enable hospitals and other health-care providers to safely, efficiently and cost-effectively convert bio-hazardous regulated medical waste into sterile, unrecognizable material suitable for disposal as municipal solid waste.