Platinum Reports On Town Hall Meeting For Echo Therapeutics, Inc. Stockholders
Encouraged by Significant Turnout of Echo Stockholders at Recent Town Hall
NEW YORK, July 22, 2014
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:
oEvidence exists to remove the three Lingering Directors, Vince Enright,
William Grieco, and James Smith for cause.
oThe Lingering Directors have lost legitimacy in the eyes of stockholders
and should resign without delay.
oKeith 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.
oDr. Michael Goldberg should immediately be installed as Chairman of the
Board of Echo.
oA 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").
oNo new financing should be entertained without the support of the two
Stockholder Supported Directors.
oDirectors 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.
Platinum Management (NY) LLC
Uri Landesman, President
SOURCE Platinum Management (NY) LLC
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