NEW YORK, July 22, 2014 /PRNewswire/ -- Platinum Management (NY) LLC and certain affiliates ("Platinum"), which beneficially hold approximately 30.34% of the shares of Echo Therapeutics, Inc. ("Echo" or the "Company") (NASDAQ: ECTE) on a fully converted basis, today reported on the Town Hall Meeting it recently hosted for the concerned stockholders of Echo. All Company directors and stockholders were invited to attend the Town Hall Meeting, but sadly directors Vincent D. Enright, William F. Grieco and James F. Smith (the "Lingering Directors") did not participate despite the dire need for immediate change at Echo.
Mark Nordlicht, Managing Member, Chief Executive Officer and Chief Investment Officer of Platinum, stated: "We were pleased that the beneficial owners of what represents more than half of Echo's fully converted shares attended the July 18, 2014 Town Hall Meeting. I would like to take this opportunity to thank everyone who contributed their perspectives to that free and honest discussion. Based on what we heard, stockholders clearly are angry and frustrated that there has been only negative change at Echo since the overwhelming rejection at the recent annual meeting of the way the Lingering Directors have been running this corporation."
After an informative presentation by independent director Dr. Michael Goldberg, the only Company nominee elected at Echo's 2014 annual meeting, the stockholders in attendance engaged in a lively and frank discussion of the numerous shortcomings they believed that Echo was suffering through under the continued influence of the Lingering Directors.
Based on a show of hands at the meeting and the equivalent via the webcast, persons representing ownership of more than 50% of Echo shares on a fully converted basis agreed, without any opposition, to the following resolutions:
- Evidence exists to remove the three Lingering Directors, Vince Enright, William Grieco, and James Smith for cause.
- The Lingering Directors have lost legitimacy in the eyes of stockholders and should resign without delay.
- Keith Gottfried, Esq. of law firm Morgan, Lewis & Bockius LLP is, in the opinion of the participating stockholders, providing advice that benefits the Lingering Directors at the expense of the Company and its stockholders and directly contributes to the worsening corporate governance of Echo.
- Dr. Michael Goldberg should immediately be installed as Chairman of the Board of Echo.
- A permanent CEO should be hired only with the support of the recently elected, stockholder supported directors, Michael Goldberg and Shepard M. Goldberg (the "Stockholder Supported Directors").
- No new financing should be entertained without the support of the two Stockholder Supported Directors.
- Directors should not be compensated with cash compensation. They should be compensated only with restricted stock and/or options that kick in only when the price of Echo's stock is $30 per share or higher.