Echo Therapeutics investor seeks return of $5 million cash investment

Platinum Management says placement contract was arranged in bad faith

By Devika Patel

Knoxville, Tenn., Sept. 17 – Echo Therapeutics, Inc. investor Platinum Management (NY) LLC and its affiliates have announced that the investors are seeking to have their $5 million investment returned. The investors purchased series E convertible preferred stock and common stock in a private placement on Dec. 10, 2013.

According to a press release from the investor, which holds 30% of the company’s outstanding common stock, Platinum believes that Echo “entered into the contract in bad faith with no intention of performing its obligations or using the funds for the intended purposes.”

Franklin, Mass.-based Echo Therapeutics is a dual platform-enabled specialty therapeutics and diagnostics company.

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