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North American Technologies Group Inc. (NATK) recently announced all holders of $2 million bridge loan notes issued in March have purchased $3 million of the company’s 8 percent convertible debentures with warrants to buy 7.5 million shares of common stock.

Due in July 2010, the debentures are convertible into common stock shares at any time at a price of 20 cents per share, subject to adjustment of a reverse stock split. Proceeds from the purchase will allow NATK to fund operations and expand sales/marketing efforts, the company said.

Meanwhile, NATK directors Kenneth Scott, Henry Sullivan and John Corcia have resigned to allow majority shareholder-nominated candidates to join the board.

Corcia had served as interim chief executive officer from April 5 to July 18 — when newly elected President and CEO Alex Rankin assumed the office — after Neal Kaufman resigned. Sullivan had served as chairman, and previously served as NATK president and CEO, and president of subsidiary TieTek L.L.C., which produces plastic-composite crossties.

NATK plans to name four new board members after mailing information to shareholders explaining changes in the board’s composition and the reverse stock split. Joseph Ethridge, Bruce Leadbetter and Patrick Long have been nominated by Sponsor Investments L.L.C., and Michael Amsalem was nominated by Midsummer Investment Ltd. Sponsor and Midsummer are two of NATK’s largest stockholders.