Platinum Montaur is lead investor for deal, which includes warrants
By Devika Patel
Knoxville, Tenn., Feb. 15 - Echo Therapeutics, Inc. settled a private placement of its series D convertible preferred stock on Feb. 8, according to an 8-K filed Tuesday with the Securities and Exchange Commission. Platinum Montaur Life Sciences, LLC was the lead investor in the $3.5 million deal.
The company sold 3.5 million preferreds at $1.00 apiece. The preferreds are initially convertible into common stock at $1.00 per share, a 67.32% discount to the Feb. 7 closing share price of $3.06.
Investors also received series 1 and series 2 warrants for 100,000 shares for every $100,000 invested. The series 1 warrants are exercisable for 50% of the shares at $1.50 until Feb. 7, 2013. The series 2 warrants are exercisable for the remaining 50% of shares at $2.50 until Feb. 7, 2013. The strike prices reflect 50.98% and 18.3% discounts to the Feb. 7 closing share price.
Proceeds were used to retire a $1 million 8% senior promissory note and will also be used for working capital and general corporate purposes.
Franklin, Mass.-based Echo Therapeutics is a dual platform-enabled specialty therapeutics and diagnostics company.
| Issuer: | Echo Therapeutics, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $3.5 million
|
| Shares: | 3.5 million
|
| Price: | $1.00
|
| Conversion price: | $1.00
|
| Warrants: | For 100,000 shares per $100,000 invested
|
| Warrant expiration: | Feb. 7, 2013
|
| Warrant strike prices: | $1.50 (50%), $2.50 (50%)
|
| Investor: | Platinum Montaur Life Sciences, LLC (lead)
|
| Settlement date: | Feb. 8
|
| Stock symbol: | OTCBB: ECTE
|
| Stock price: | $3.40 at close Feb. 8
|
| Market capitalization: | $108.79 million
|
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