NEW YORK, May 19, 2014 /PRNewswire/ -- Platinum Management (NY) LLC and certain affiliates, collectively the largest stockholder of Echo Therapeutics, Inc. (NasdaqCM: ECTE) ("Echo" or "The Company"), owning approximately 20% of the outstanding common stock, announced today that it has filed and mailed definitive proxy materials, including a letter to fellow stockholders of Echo, urging them to vote the GOLD proxy card or GOLD voting instruction form in favor of Platinum's highly qualified nominee, Shepard Goldberg, at the Company's upcoming Annual Meeting of stockholders scheduled for June 19 th, 2014.
The full text of the letter follows:
AN ERA OF UNDERPERFORMANCE AND FAILURE AT ECHO THERAPEUTICS MUST END!
VOTE FOR CHANGE. VOTE PLATINUM'S GOLD PROXY CARD TODAY!May 19, 2014 Dear Fellow Stockholders: Platinum Management (NY) LLC, together with its affiliates ("Platinum"), are the beneficial owners of 2,383,876 shares of common stock of Echo Therapeutics (the "Company" or "Echo"), representing approximately 20% of the shares outstanding, making us the Company's largest stockholder. Platinum is an investment advisor with more than $1.3 billion in assets under management. We are a long-term and dedicated stockholder of Echo, having made our first investment in the Company in 2007. Since that time we have invested more than $18 million in Echo. We are committed to maximizing the long-term value of Echo stock as our interests are aligned with ALL stockholders who want improvement at the Company. DO NOT BE MISLED!IT WAS NOT OUR DESIRE TO WAGE A PROXY CONTEST. Make no mistake about it—conducting this solicitation was not our preference. It is an act of last resort. We strongly believe that once you consider the historical performance and recent background of our engagement with the Board, you will agree that the best way to protect future stockholder value is to send a strong message to Echo and replace Robert F. Doman, who we believe has been an ineffective director, with our well qualified candidate, Mr. Shepard M. Goldberg. After years of dismal performance and terminal inaction on the part of the Board unless prompted by Platinum, we were left with no choice but to make our concerns public. At the end of August 2013, we proposed to the Company a number of meaningful actions we believed were needed to be taken to unlock value for stockholders, including:
- Entering into a partnership for the development and manufacture of the Company's CGM product in mainland China; and
- Engaging a consulting firm to review the Company's product and business development positioning.
- We question the direction of the Company under the leadership of this Board;
- We believe this Board had made a mockery of corporate governance; and
- We do not believe the interests of this Board are aligned with the best interests of stockholders.
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