Investors also get five-year warrants; deal funds corporate purposes
By Devika Patel
Knoxville, Tenn., Dec. 13 - Echo Therapeutics, Inc. completed a $9.81 million private placement of series E convertible preferred stock and common stock with Platinum Partners Value Arbitrage Fund LP and Platinum Partners Liquid Opportunity Master Fund LP on Dec. 10, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company sold 1,818,182 common shares at $2.75 per share, 1,748,613 preferreds at $2.75 apiece and 181,818 warrants. Each warrant is exercisable at $2.75 for five years.
The preferreds convert into common shares on a one-for-one basis.
The price per preferred and common share and the warrant strike price is a 1.48% premium to the Dec. 9 closing price of $2.71.
Proceeds will be used for working capital and other general corporate purposes.
As a result of the private placement, Echo no longer plans to conduct the public offering of units that was announced on Dec. 2. The deal, which would have been conducted by Roth Capital Partners, was intended to be a potential backup financial alternative in case negotiations for a license, development and commercialization agreement with Medical Technologies Innovation Asia, Ltd. were not successful.
Franklin, Mass.-based Echo Therapeutics is a dual platform-enabled specialty therapeutics and diagnostics company.
| Issuer: | Echo Therapeutics, Inc.
|
| Issue: | Series E convertible preferred stock, common stock
|
| Amount: | $9,808,686
|
| Warrants: | 181,818
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.75
|
| Investors: | Platinum Partners Value Arbitrage Fund LP and Platinum Partners Liquid Opportunity Master Fund LP
|
| Settlement date: | Dec. 10
|
| Stock symbol: | Nasdaq: ECTE
|
| Stock price: | $2.71 at close Dec. 9
|
| Market capitalization: | $35.89 million
|
|
|
| Preferred stock
|
| Amount: | $4,808,686
|
| Preferreds: | 1,748,613
|
| Price: | $2.75
|
|
|
| Common stock
|
| Amount: | $5 million
|
| Shares: | 1,818,182
|
| Price: | $2.75
|
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