Company sells equity at $1.00 per share in units priced at $25,000
By Devika Patel
Knoxville, Tenn., Jan. 5 - Echo Therapeutics, Inc. priced a private placement of stock on Nov. 26, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal raised $70,000 at pricing, $1.25 million on Dec. 29 and $616,500 on Jan. 4.
The company is selling 120 units of 25,000 common shares and warrants for 25,000 shares at $25,000.00 per unit. It sold 2.8 units in the first tranche, 50 units in the second and 24.66 units in the third.
Of the warrants, half are exercisable at $1.50; the remaining warrants are each exercisable at $2.50. The strike prices reflect 50% and 150% premiums to the Nov. 24 closing share price of $1.00.
Proceeds will be used for working capital and general corporate purposes and to repay a promissory note.
Franklin, Mass.-based Echo Therapeutics is a dual platform-enabled specialty therapeutics and diagnostics company.
Issuer: | Echo Therapeutics, Inc.
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Issue: | Units of 25,000 common shares and warrants for 25,000 shares
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Amount: | $3 million
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Units: | 120
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Price: | $25,000
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Warrants: | Warrants for 25,000 shares per unit
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Warrant strike prices: | $1.50 (for 12,500 shares), $2.50 (for 12,500 shares)
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Pricing date: | Nov. 26
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Settlement dates: | Nov. 26 (for $70,000), Dec. 29 (for $1.25 million), Jan. 4 (for $616,500)
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Stock symbol: | OTCBB: ECTE
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Stock price: | $1.00 at close Nov. 26
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Market capitalization: | $44.41 million
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