Replies to post #5424 on Echo Therapeutics Inc fka ECTE

[Flaviker]

Amen

[ramad]

@Figaruch, Ramads sources see it somewhat different then what you posted. For one Echo was aware that the Besser group did not have the funds and they would have to raise the funds to give Echo. The previous raise for the notes issued last year by the underwriter which Craig Pierson was involve was a failure. At the end of the day MTIA and Platinum and other Echo shareholders bought about 80% of the notes not including the Besser group. Echo wouldn need them if they knew they could not raise money from outside investors or fresh blood.
As we all know Craig Pierson and the cthe brokerage he represents teamed up with the Beaser Group on the suit they brought forth against Echo. It was sour grapes by them because they lot the suit. They claimed they would never invested if they knew Platinum was the collateral agent. They are so stupid because it was written in the note very clearly that PP was the collateral agent. They just never read it. Echo had a choice to go with MTIA who in the past had given the funds to go forward or take a chance with the Besser group. Ramad had seen the term sheet from MTIA for $5M. Echo made the logical choice with MTIA not knowing the Besser Group would bring a suit against echo and MTIA. That killed the deal.
The trust was lost between echo and MTIA.
MTIA was always going to get the newest technology echo developed. That would be the only way MTIA would be able to go forward with clinical trials. The older version was not able to get concistent readings with the CGM components that MTIA and Echo thought would pass the litmus test on the first round.

Granted Echo has to take some blame by not having a clause in their agreement that if MTIA backs out their is a monetary penalty. Stupidity of Alan and Echo's legal council. Their is plenty of blame to go around but the Besser group was the biggest deterent for echo not receiving the funds.
The latest is that MTIA has not come forth for several months you have to wonder if their investors actually have the funds or they are cutting their losses and will negotiate with the noteholders how they will capitalize on the technology if Echo files bankruptcy.
Ramads calculations show clearly that MTIA would make more money if the CGM can be commercialized by keeping Echo alive. Ramad has to go under the assumption at this late hour Echo has offered MTIA everything as mentioned in one of Ramads previous posts. At the end all the parties have their own agenda what's best for them while the shareholders are holding the smaller straw.
Their is nothing more to say except either they get the necessary funds or not.