Platinum Partners Value Arbitrage gets notes in respect of bridge loan
By Angela McDaniels
Tacoma, Wash., Feb. 12 – Echo Therapeutics, Inc. issued a $100,000 promissory note to Platinum Partners Value Arbitrage Fund LP on Feb. 11 in respect of a bridge loan made by Platinum.
The promissory note bears interest at the Wall Street Journal Prime rate, compounded monthly. Interest is payable at maturity.
The maturity date is the earlier of the completion of the sale by the company of at least $3 million of equity securities and 120 days from issuance.
The promissory note may, at the lender’s option, be exchanged for securities issued in any subsequent equity or equity-linked financing by the company on terms more favorable than the terms governing the promissory note. This includes the up to $5.15 million placement of 10% senior secured convertible notes arranged on Jan. 29.
The one-year secured notes are convertible into common shares at $1.50 per share. Investors are also receiving 18-month warrants with an exercise price of $1.50.
The promissory note is unsecured and is subordinated and junior, in payment and priority, to the secured convertible notes.
Iselin, N.J.-based Echo Therapeutics is a medical device company.
| Issuer: | Echo Therapeutics, Inc.
|
| Issue: | Promissory note
|
| Amount: | $100,000
|
| Coupon: | Wall Street Journal Prime rate, compounded monthly and payable at maturity
|
| Maturity: | Earlier of completion of sale by company of at least $3 million of equity securities and 120 days from issuance
|
| Warrants: | No
|
| Investor: | Platinum Partners Value Arbitrage Fund LP
|
| Settlement date: | Feb. 11
|
| Stock symbol: | Nasdaq: ECTE
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| Stock price: | $0.90 at close Feb. 10
|
| Market capitalization: | $10.01 million
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