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North American Technologies Group Inc. (NATK) recently secured $5.5 million in additional equity financing to fund growth initiatives and obtain working capital.

Owner of composite tie supplier TieTek, NATK sold 18.6 million shares of common stock and warrants to buy up to 9.3 million common shares to a group of investors, including several major shareholders. Shares were sold at a price of 30 cents; warrants can be exercised at any time at a price of 36 cents per share.

NATK also has restructured $25.5 million of debt and debentures. The amortization of principal for $14 million in senior debt was deferred until July 1, 2008, and the maturity date for $11.5 million in convertible debentures was extended from Dec. 31, 2006, to July 1, 2008. In addition, all debts were reclassified as long-term liabilities in the company’s financial statements.

Generating revenue hasn’t been a liability for TieTek of late, thanks to a production boost at its Marshall, Texas, plant and rise in tie prices that offset higher raw material costs. In its second fiscal quarter, which ended June 26, the company more than doubled revenue to $4.5 million compared with first quarter-FY2006’s revenue of $1.9 million. During the fiscal year’s first half, revenue totaled $6.4 million, more than doubling first half-2005’s $2.9 million in revenue. In all of FY2005, TieTek generated $5.2 million in revenue.

However, the company’s second-quarter net loss increased to $4.3 million compared with the first quarter’s $3.1 million because of an inventory write-down of $465,950, a write-down of $187,561 associated with relocating the company’s Houston facility and $145,564 in non-cash stock option expenses.