Deal sells one-year notes with warrants for 3,432,413 common shares
By Devika Patel
Knoxville, Tenn., May 4 – Echo Therapeutics, Inc. raised $3,361,620 in the second tranche of a $5,148,620 private placement of secured convertible notes on May 3, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Newbridge Securities Corp./LifeTech Capital was the agent for the deal, which raised $1,787,000 on Jan. 29.
The one-year notes are convertible into common shares at $1.50 per share.
The investors also received warrants for 3,432,413 shares, with warrants for 1,191,333 shares issued in the first tranche and warrants for 2,241,080 shares issued in the second tranche. The warrants are each exercisable at $1.50 for 18 months.
The conversion price and strike price are a 37.62% premium to the Jan. 28 closing share price of $1.09.
Proceeds will be used as working capital, for research and development and for other general corporate purposes.
Iselin, N.J.-based Echo Therapeutics is a medical device company.
| Issuer: | Echo Therapeutics, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $5,148,620
|
| Maturity: | One year
|
| Conversion premium: | 37.62%
|
| Conversion price: | $1.50
|
| Warrants: | For 3,432,413 shares
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | $1.50
|
| Agent: | Newbridge Securities Corp./LifeTech Capital
|
| Announcement date: | Feb. 1
|
| Settlement dates: | Jan. 29 (for $1,787,000), May 3 (for $3,361,620)
|
| Stock symbol: | Nasdaq: ECTE
|
| Stock price: | $1.09 at close Jan. 28
|
| Market capitalization: | $18.7 million
|
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