Echo Therapeutics Engages PricewaterhouseCoopers' Restructuring Practice to Explore Financial and Strategic Alternatives

PHILADELPHIA, Oct. 2, 2014 /PRNewswire/ -- Echo Therapeutics, Inc. (NASDAQ: ECTE), a medical device company, today announced that the Company has retained PricewaterhouseCoopers LLP's Restructuring and Recovery Services Practice (PwC) as a financial and restructuring consultant to assist the Company in exploring financial and strategic alternatives that could sufficiently address its liquidity needs and allow it to resume operations. Such financial and strategic alternatives could include, but are not limited to, a sale of intellectual property and other assets, a merger, other business combination, a capital transaction and/or a voluntary petition for reorganization or liquidation pursuant to the U.S. Bankruptcy Code.

On September 23, 2014, Echo announced that it had suspended its product development, research, manufacturing and clinical programs and operations to conserve its liquidity and capital resources. The workforce reduction due to the suspension of operations comprised approximately 70% of Echo's workforce. Any resumption of operations would be dependent on Echo's ability to identify a strategic or financial alternative that would provide Echo with committed and sufficient third-party funding. No assurances can be given that Echo will be able to identify a strategic or financial alternative that would provide Echo with funding sufficient to enable Echo to resume its operations.

Echo cautions its stockholders and others considering trading in its securities that PwC's engagement and Echo's review of financial and strategic alternatives with their assistance is only in its beginning stages. Echo will proceed in an orderly and timely manner to consider possible financial and strategic alternatives for the Company and their implications. However, no assurances can be given as to whether any particular financial or strategic alternative for Echo will be recommended or undertaken or, if so, upon what terms and conditions.  If Echo is unable to identify an acceptable financial or strategic alternative that sufficiently addresses Echo's liquidity needs, Echo could be forced to file for protection under the U.S. Bankruptcy Code. Echo currently does not intend to make any further public announcement regarding its review of possible financial and strategic alternatives until this evaluation process has been completed.

About PricewaterhouseCoopers' Business Recovery Services

PwC's Business Recovery Services practice is a leading advisor to stakeholders during complex financial restructurings, bankruptcies and turnaround situations.  With its focus on broad advisory, complex financial services and crisis management, PwC provides strategic, operational and financial alternatives to preserve and restore the performance and value of businesses. With the power of its professionals around the world, PwC delivers specific industry and technical expertise with its hand-on, solutions driven approach.

About Echo Therapeutics

Echo Therapeutics was developing its Symphony^® CGM System as a non-invasive, wireless, continuous glucose monitoring system for use initially in the critical care setting. A significant longer-term opportunity may also exist for Symphony to be used in the hospital beyond the critical care setting, as well as in the outpatient setting. Echo also developed its needle-free skin preparation device as a platform technology that allowed for enhanced skin permeation enabling extraction of analytes, such as glucose, and enhanced delivery of topical pharmaceuticals.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current expectation and beliefs of Echo's management about the business of Echo, including, but not limited to, statements regarding Echo's review of potential strategic and financial alternatives, the timing of such review, and the possible outcomes of such review, expectations regarding Echo's liquidity needs, Echo's ability to continue to fund its operations, Echo's ability to identify strategies to address its liquidity needs, Echo's ability to address its liquidity needs with additional third-party funding and the possibility that Echo may be forced to seek protection under the U.S. Bankruptcy Code. These forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those expressed or implied by such forward-looking statements. Those risks and uncertainties include, but are not limited to, risks related to the actions of Platinum Management (NY) LLC, its affiliates and the other members of its group, including, but not limited to, the lawsuits filed or threatened by the Platinum Group and the actions taken by the Platinum Group to harm Echo's prospects and interfere with Echo's relationships with its vendors and employees, including the amount of related costs and the disruption caused to business and financing activities by these actions, the potential inability of Echo to secure additional funding for its operations, the possibility that Echo may be forced to seek protection under the U.S. Bankruptcy Code, the adverse impact of any such bankruptcy filing by Echo on its business, financial condition and results of operations, including its ability to maintain relationships with vendors and employees, the actions of Echo's creditors and other third parties with interests in any bankruptcy case filed by Echo, and Echo's ability to obtain bankruptcy court approval in connection with any bankruptcy case filed by Echo. Other risks and uncertainties that may cause actual events to differ materially from the statements we have made herein are identified and described in more detail in Echo's filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2013, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. The forward-looking statements in this Press Release are made as of the date hereof. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Echo does not expect to, and disclaims any obligation to, publicly update, amend or clarify any forward-looking statements whether as a result of new information, future events or otherwise. Echo, however, reserves the right to update such statements or any portion thereof at any time for any reason. 

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SOURCE Echo Therapeutics, Inc.