Due diligence on echo, shareholders should be aware that S.Hollander former CEO has 500,000 options that can be exercised at various prices. I am not clear if he has to exercise those options within 60 days.Plus their are an approximate additional 2.2 million options issued by the equity compensation plan formed by Echo to officers, employees, consultants and non employee directors. It should be noted that of the total options of 2.7M that was granted 1.2M was granted from Jan 2016 to June 30th 2016 from the compensation committee for Echo management doing a great job. Now if that is not spitting in the face of shareholders I do not know what is. If the committee thought the management did so well during the first half of 2016 with delays after delays starting clinical trials, delisted and terminating the CEO I just can not imagine what they will award themselves if they have a working CGM.I 630G
Secondly, Echo management granted all the series F convertible shares the same rights as the holders of the notes issued earlier this year. The series F holders were entitled to the roll back the price of the shares that were originally issued to them. If the series F shares were issued at 1.50 it was rolled back to 92 cents and would entitle them for more shares. That's another kick in the pants to the shareholders. The main holders of the series F is platinum Funds and MTIA.
Presently, everyone is under water so no one is benefitting. However if Echo can realize the needed funding be mind full that their are millions of options that can be exercised at various prices. Hollander option prices are $1.12 and $1.47.
If I was a shareholder I would be quite upset as to how the committee can justify their actions in granting all those options without any performance. Oh I forgot to mention buried in their filings they mentioned that about 14,000 shares were tied based on performance and the 2.7M is not tied to any performance by management. I would think they have it backwards and only thinking to enrich ithemselves with out any interest to the shareholders. I guess now they have an incentive to make it work. Just being informative.
