FRANKLIN, Mass., Jan. 6, 2011 /PRNewswire/ — Echo Therapeutics,
Inc. (OTC Bulletin Board:
ECTE), a company developing its needle-free Symphony™
tCGM System as a non-invasive, wireless, transdermal continuous
glucose monitoring system and its Prelude™ SkinPrep System
for transdermal drug delivery, today announced that it has raised
approximately $2.5 million through a series of private placements
of the Company’s stock and warrants, and it has received a binding
commitment for an additional $3 million. The funding was led
by the Company’s largest shareholder, Platinum Montaur Life
Sciences, LLC (“Montaur”). Current investors and other select
institutional and accredited investors also participated in the
financings. Echo expects to use the net proceeds for product
development, clinical studies, working capital and general
corporate purposes.
Echo conducted a private placement of common stock and warrants
with aggregate proceeds of approximately $2.5 million through a
series of closings held from November 2010 through January 2011.
Investors purchased units, or partial units, at a price per
unit of $25,000, consisting of (i) 25,000 shares of Echo common
stock, (ii) Series 1 warrants to purchase 12,500 shares of Echo
common stock with an exercise price of $1.50 per share, and (iii)
Series 2 warrants to purchase 12,500 shares of Echo common stock
with an exercise price of $2.50 per share.
On January 5, 2011, Echo also received a $3 million funding
commitment from Montaur. Montaur will advance $1 million of the
committed funds to Echo pursuant to a bridge note, which is
intended to convert into convertible preferred stock no later than
February 1, 2011. Montaur has agreed to invest an additional
$2 million through the purchase of convertible preferred stock in
monthly installments from February through May 2011.
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