Echo Therapeutics Inc fka ECTE

[ramad]

@hemopure36, Following up from previous post due to free time and make your forensic analysis easy.

The strongest factor was Echo had a history of poor management including the board of directors which bled the company for their own benefit. Add up all the shares and options they rewared themselves. They even had the audacity to try to have the shares immediately vested until a shareholder larged a complaint and they had to change the time period to be vested. Even Alan joined in the game by having the board award him 5% of the float before they left the board plus awarding themselves shares.

Firing The CEO and have to pay a years salary without having lined up a new CEO or have the liquidity to operate was another bad decision. Alan is just a glorified bookkeeper (accountant) who in the past had a company that went bust. Great choice!!!. Was the payment arrangement to the CEO to silence him. That is Ramads opinion.

Echo had been advised by a shareholder and pleaded that they should seek and make an agreement with a reliable medical devise company to help them develop the CGM instead of doing it in house. That was dismissed and another major bad decision by management. They did not have the means or the funds to do it themselves.

The company relied solely on Platinum and later by MTIA for funding Who is MTIA? Upon Ramads due diligence MTIA was not convinced they had the capabilities to help Echo formulate a workable CGM.

If you read the agreement between MTIA and Echo it stated that MTIA had to report on monthly bases their progress in their role in developing the CGM. Upon trying to get confirmation with the CEO if they indeed received monthly reports Echo refused to confirm they received such reports.

Another bad corporate decision was that they refused an offer of funds so as they would not get delisted.Their excuse was that it would have diluted the shares to much and they would rather be delisted. Made no sense when the CEO was asked Echo would still need additional capital and the shares would also be diluted.

Ramads conclusion was that Echo wanted to keep any outsider away of having a board seat not dictated by Platinum to possibly oversee the companies activity. Ramad believed that the CEO and Board was not performing their fiduciary responsibility to the shareholders by refusing the offer.

Echo relied on Platinum and MTIA for funding and Ramad believed that was by design so no outsider possibly could change the direction of Echo's busines plan.

The kicker and most agrevios is that Echo held back to the shareholders which was that they knew that the prototype CGM was not getting concistent readings and would not be able to start clinical trials yet pass any clinical trial testing.Ramad believed that falls in the SEC rules that the company withheld material information to the shareholder that if released would effect the stock price negatively. Echo received in writing on behalf of a shareholder the SEC ruling and interpretation by previous court decisions but just ignored it or they knew they were wrong to withhold that info and would have major problems with the SEC and possible law suits.

That should be enough info for your forensic study. Ramads advise to Hemopure36 you should devote your time and efforts to seek the laws afforded to shareholders if you believe a company did not comply with the SEC rules or management was irresponsible as to their fiduciary responsibilities and report it to the proper authorities.Research Echo's filings, past presentations, press releases and you will find the answers.
Good luck.