ISELIN, N.J., May 4, 2016 /PRNewswire/ -- Echo Therapeutics, Inc. (Nasdaq: ECTE), a medical device company focused on non-invasive, needle-free continuous glucose monitoring (CGM) and associated technologies, today announced the final closing of a previously announced $5,145,000 private placement financing transaction of convertible notes and warrants. As previously announced, the initial closing of $1,787,000 occurred on January 29, 2016. The second tranche of the financing, or $3,358,000, was subject to the Company obtaining shareholder approval to comply with NASDAQ listing rules. The Company attained shareholder approval at a Special Meeting of Stockholders on April 14, 2016 and the final closing occurred on May 3, 2016.
The notes are convertible into shares of the Company's common stock at a price of $1.50 per share and mature twelve months from the closing dates. In connection with the initial closing, the Company issued five-year warrants to purchase up to 1,191,333 shares of its common stock at $1.50 per share. In connection with the second closing, the company issued one and a half year warrants to purchase up to 2,241,080 shares of Echo's common stock at $1.50 per share.
Newbridge Securities Corporation/LifeTech Capital served as the placement agent for the transaction. After the placement agent fees and estimated offering expenses payable by the Company, the Company received net proceeds of approximately $4.8 million which will be used as working capital for research and development and for other general corporate purposes.
Further details regarding the private placement are described in a Current Report on Form 8-K filed with the Securities and Exchange Commission on May 4, 2016.
About Echo Therapeutics
Echo Therapeutics is developing its non-invasive, wireless, continuous glucose monitoring (CGM) system. A significant opportunity exists for the Company's CGM to be used in the outpatient diabetes market and in the fitness, weight loss and personal lifestyle wearable-health space. A longer-term opportunity also exists in the hospital settings. Echo developed its needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose, and enhanced delivery of topical pharmaceuticals.
Cautionary Statement Regarding Forward Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to regulatory approvals and the success of Echo's clinical studies, the safety and efficacy of Echo's CGM System, the failure of future development and preliminary marketing efforts related to Echo's CGM System, Echo's ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Echo's and its partners' ability to develop, market and sell Echo's CGM System, the availability of substantial additional equity or debt capital to support its research, development and product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to its CGM System. These and other risks and uncertainties are identified and described in more detail in Echo's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2015, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Echo undertakes no obligation to publicly update or revise any forward-looking statements.
For More Information:
Christine H. Olimpio
Director, Investor Relations and Corporate Communications
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SOURCE Echo Therapeutics, Inc.