American Ecology in Agoura Hills said its stockholders approved the company's plan to sell $28.5 million in new preferred stock, convertible debt and warrants to Browning-Ferris Industries. Both companies provide waste-disposal services.
The debt is convertible into American Ecology common stock, and the warrants would allow Browning-Ferris to buy additional common shares at a set price within a certain period.
If the debt is converted and the warrants are exercised for an additional $22.5 million, Houston-based Browning-Ferris would own more than 50% of American Ecology's total shares outstanding, the company said.
The transaction is expected to be completed within the next two months.