Tuesday, March 25, 2008

Echo wins financing deal worth up to $3.3M

Echo Therapeutics Inc. reports it has obtained an option to issue up to $2 million in secured notes as well as warrants to buy up to 634,920 shares of its common stock for $2 per share to Imperium Master Fund Ltd.

Echo (OTCBB: ECTE), a Franklin-based biotech company, said it has issued the first note and warrants for $500,000 to the investment fund, and it has options to sell notes to the fund on April 24, May 24 and June 24 of this year for $500,000 each. The notes mature in 12 months at an annual interest rate of 10 percent, though that would drop to 9 percent if the company completes one or more equity financings totaling at least $5 million.

Echo develops transdermal technology to take diagnostic readings and to deliver treatments through the skin. The company is developing a transdermal, wireless monitor designed to provide continuous blood-glucose readings for diabetics.

Echo reported a 2006 net loss of $5.3 million on revenue of $90,000.