ISELIN, N.J., July 8, 2016 /PRNewswire/ -- Echo Therapeutics, Inc. (Nasdaq: ECTE), a medical device company focused on non-invasive continuous glucose monitoring (CGM) and associated technologies, today announced that the company has received notice on July 8, 2016 from the Nasdaq Stock Market (Nasdaq) that trading of the Company's common stock will be suspended on Nasdaq at the opening of business on Tuesday, July 12, 2016, and Nasdaq will file a Form 25 Notification of Delisting with the Securities and Exchange Commission.
Effective July 12, 2016, Echo expects that its common stock will trade on the OTCQB® Venture Market, operated by OTC Markets Group Inc. under its current trading symbol "ECTE." Echo anticipates that beginning Tuesday, July 12, 2016, investors will be able to view real-time best bid and ask quotes for "ECTE" at www.otcmarkets.com and through most online broker websites.
As stated in Nasdaq's letter, the Company was before the Nasdaq Hearing Panel on February 25, 2016, for failing to meet the shareholders' equity requirement. The Panel issued a decision on March 9, 2016, continuing the listing. The Company was required, by the terms of that decision and pursuant to applicable listing rules, to demonstrate compliance with the requirement of a minimum $2.5 million in stockholders' equity by July 5, 2016. The Company was unable to meet the terms of the exception by July 5, 2016.
"The progress that we have made in the development of our NextGen CGM system has begun to make a positive difference in the performance and outlook of the Company, but other recent factors negatively impacting the stock price don't currently make it possible to comply with Nasdaq continued listing criteria," commented Scott W. Hollander, Echo's President and CEO. "While we anticipate trading on the OTCQB, we remain focused on our R&D efforts to bring our technology to market."
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.