Echo Therapeutics, Inc. (OTCMKTS:ECTE) Files An 8-K Other EventsItem 8.01
As previously reported, due to the financial condition of Echo Therapeutics, Inc. (the “Company”), the Company was unable to make payment on $1,787,000 of the 10% senior secured convertible notes of the Company due on January 28, 2017 (the “January Notes”). An additional $3,361,620 in principal amount of 10% senior secured convertible notes of the Company matures on May 3, 2017 (the “May Notes” and together with the January Notes, the “Notes”). The Company has been engaged in prolonged discussions to obtain new financing and obtain appropriate forbearance and/or waivers from the investors holding Notes. To date, the Company has been unsuccessful in raising financing and, while the Investors have not taken any action against the Company, the Company has not yet received any formal forbearance and/or waiver from the Investors. The Company has been forced to reduce its staff down to one employee, Alan Schoenbart, the Company’s Chief Executive and Chief Financial Officer, who has been working without pay. Further, the Company has been unable to pay rent at its corporate and research facilities, which will more than likely result shortly in eviction proceedings. Additionally, the Company’s patents are at risk. While the Company continues to pursue financing, there can be no assurance that it will be able to do so on acceptable terms or at all, which may result in foreclosure upon the assets of the Company by the Investors.
About Echo Therapeutics, Inc. (OTCMKTS:ECTE) Echo Therapeutics, Inc. is a medical device company. The Company is engaged in developing a non-invasive, wireless continuous glucose monitoring (CGM) system with use in the wearable-health consumer market, diabetes outpatient market and in the hospital setting. The Company operates through the development of transdermal skin permeation and diagnostic medical devices segment. The Company has also developed its needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose, enhanced delivery of topical pharmaceuticals and other applications. The CGM System includes a skin preparation device, transdermal glucose sensor, battery and wireless transmitter. The Company has conducted several human feasibility clinical studies with its CGM System in healthy subjects, diabetics and critically ill patients, as well as a clinical study at several hospitals in the United States. Echo Therapeutics, Inc. (OTCMKTS:ECTE) Recent Trading Information Echo Therapeutics, Inc. (OTCMKTS:ECTE) closed its last trading session down -0.0005 at 0.0900 with 313,339 shares trading hands.