By Devika Patel
Knoxville, Tenn., March 25 - Echo Therapeutics, Inc. said it will raise $2 million from a private placement of senior secured notes with Imperium Master Fund, Ltd.
The deal will settle in four equal tranches of $500,000. Echo said the first tranche already has settled and the remaining tranches will settle on April 24, May 24 and June 24. Echo must give 10 days notice if it plans to cancel one of those tranches.
The notes mature in one year and carry a 10% coupon, which is compounded monthly and payable at maturity. Each note will accrue $552,356 in interest.
Echo has the right to repay the notes' principal in cash, in whole but not in part, prior to maturity at a premium of 1.02 times the unpaid principal plus interest.
If at any time before maturity, Echo completed a private placement of $5 million or more, the notes' maturity will be extended to two years and the coupon will be reduced to 9%, with $546,903 payable at maturity.
Imperium also received warrants for 634,920 common shares, exercisable at $2.00 for five years.
Franklin, Mass.-based Echo Therapeutics is a dual platform-enabled, specialty therapeutics and diagnostics company.
| Issuer: | Echo Therapeutics, Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $2 million
|
| Maturity: | One year
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | For 634,920 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Investor: | Imperium Master Fund, Ltd.
|
| Pricing date: | March 25
|
| Settlement date: | March 25 (for $500,000), April 24 (for $500,000), May 24 (for $500,000), June 24 (for $500,000)
|
| Stock symbol: | OTCBB: ECTE
|
| Stock price: | $1.55 at close March 24
|
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