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On March 10, North American Technologies Group Inc. announced it had completed a private placement of $7 million of Series AA convertible preferred stock and warrants to several institutional investors, led by New York City-based Midsummer Investment Ltd. and Chicago-based Crestview Capital.

The company also has the right to sell a second tranche — $7 million of preferred stock and warrants — to the investors on the same percentage terms and conditions as the first tranche.

Houston-based North American Technologies plans to use the proceeds of the placement to support accelerated expansion of its fast-growing TieTek L.L.C. subsidiary, and to pursue strategic opportunities and possible acquisitions, according to a prepared statement.

TieTek, which manufactures composite railroad cross-ties from recycled plastics and scrap tires, is in the process of constructing two additional manufacturing equipment lines at its new plant in Marshall, Texas, which when complete will quadruple tie-supply capacity.