When this blog first started, in 2011, our very first post detailed the sorry state of Echo Therapeutics. Sad to say, 6 years later this obvious fraud still trades, albeit on its last legs at 4c per share or so.
From a recent 8K filing:
Due to the financial condition of Echo Therapeutics, Inc. (the “Company”), the Company was unable to make payment on $1,787,000 of the 10% senior secured convertible notes of the Company due on January 28, 2017 (the “January Notes”). An additional $3,361,620 in principal amount of 10% senior secured convertible notes of the Company matures on May 3, 2017 (the “May Notes” and together with the January Notes, the “Notes”). The Company has been engaged in prolonged discussions to obtain new financing and obtain appropriate forbearance and/or waivers from the investors holding Notes. To date, the Company has been unsuccessful in raising financing and, while the Investors have not taken any action against the Company, the Company has not yet received any formal forbearance and/or waiver from the Investors. The Company has been forced to reduce its staff down to one employee, Alan Schoenbart, the Company’s Chief Executive and Chief Financial Officer, who has been working without pay. Further, the Company has been unable to pay rent at its corporate and research facilities, which will more than likely result shortly in eviction proceedings. Additionally, the Company’s patents are at risk.
Victory is sweet.