NEW YORK, Aug. 30, 2013 /PRNewswire/ -- Platinum-Montaur Life Sciences, LLC ("Platinum"), the largest shareholder of Echo Therapeutics, Inc. (Nasdaq: ECTE) ("Echo" or the "Company") with approximately 20% of the outstanding common stock of the Company, today sent a letter to the Board of Directors of Echo (the "Board") outlining Platinum's proposals to stop the destruction of shareholder value.
Echo's share price has collapsed over 95% in the last two years.
"We have diligently attempted on numerous occasions to work constructively with the Board," stated Michael Goldberg, M.D., Portfolio Manager at Platinum. "Regrettably, endless months of Board inaction force us to publicly announce a multi-point plan carefully targeted to address the shortfalls in leadership, strategy, product partnering and financing that have plagued Echo and punished its shareholders through dilution and rampant loss of market value."
Platinum's letter to the Board, reproduced below, proposes an immediate plan that:
- Removes ineffective directors and replaces them with professionals who bring key industry experience and informed investor community insight to a Board that has proven incapable of developing Echo's potentially groundbreaking CGM Technology and in communicating with the shareholder base
- Presents a uniquely valuable opportunity to team with an offshore partner who will bear the burden of developing and marketing the CGM Technology on economically favorable terms
- Engages a premier consulting firm to help the new Board establish and implement a sorely needed strategic vision
- Retains a leading recruiting firm to hire a gifted permanent CEO with bona fide medical device development credentials who is not tainted by service on the current underperforming Board
- Offers financing at a premium to share price that will halt the dilution that has battered the shareholder owners of Echo