Echo Therapeutics to raise $3 million from institutional investors

Nov 13 2009

Echo Therapeutics, Inc. (OTC Bulletin Board: ECTE), a company developing its needle-free Symphony(TM) tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring (tCGM) system and the Prelude(TM) SkinPrep System for transdermal drug delivery, announced today that it has entered into definitive agreements with accredited and institutional investors to raise approximately $3 million through the sale of approximately 2.37 million shares of common stock at $1.25 per share through a private placement transaction. The transaction will include approximately 2.2 million common stock purchase warrants with an exercise price equal to $2.00 per share and a term of five years. Burnham Hill Partners, LLC acted as placement agent for the transaction.

"We are extremely pleased to have executed on this financing," stated Patrick Mooney, M.D., Echo's Chairman and Chief Executive Officer. "With this additional capital, we will have the finances to advance our Prelude SkinPrep and Symphony tCGM Systems toward commercialization, which we expect to occur next year."