Resignation of Scott Hollander as CEO. Based on all the filings and without anyone at Echo informing the shareholders of a road map it is still unclear as to the progress of the foremost mile stone of the start of the clinical trials for CFDA Approval
This is what we do know. No acting CFO has been named. Thereby who is making the decisions for Echo or is it done by committee. It is clear that due to lack of progress of going forward with the clinical trials forced the issue of resignation. Shareholders do not know if the CGM that MTIA was developing would meet the requirements to get CFDA approval or not which leads me to believe that hard decisions will have to be made to go forward with the current CGM. Scott refused to give the shareholders any info on the preliminary internal testing done by MTIA which leads me to believe they were not competitive with other CGM's on the market or retool with the new CGM model that Echo was going to submit for FDA approval. I believe it will be the latter.
If that's the case i would not expect clinical trials to start until early 2017. It appears that MTIA will be the lead in this decision. The $250,000 loan just keeps the doors open for another month until a decision is made by MTIA who I believe will fund Echo if they are convinced the new CGM model will be sufficient to get approval and can be commercialized. If MTIA gives the green light Echo will finally be on fast track on getting recognition on their technology and will be followed closely by the diabetic community as to the results. I am sure the shareholders will have more color from management upon seeking the necessary funds to continue operations. In my opinion Echo technology will be successful but I am sure their will be lots of conditions which Echo will have to meet to get the full amount of the total funding such as meeting certain milestones prior to getting x amount of the funding.
The shareholders also know if I read it correctly Scott Hollander has 90 days to exercise his options. Being he has a few hundred thousand options their will be pressure on the stock price any price above his strike price.
Bottom line there are many IF'S and uncertainties, no qualified CEO, no info on the clinical trials, and funds to keep the doors open for a month or so.Does MTIA have the necessary qualifications to build a CGM. The shareholders no nothing about MTIA. Until Echo addresses the shareholders with a conference call the shareholders are still in the dark and in the same situation as Scott being CEO by not updating the shareholders via a conference call for the past 5 months.
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