Firstly, I respect freedom of speech and the constitution that protects that right, however it does not include protecting fraud and lies from annonymous bashers with some personal grudge or an agenda to manipulate public securities. When I read these boards I expect both sides of opinion, but non stop idiotic ranting and pumping I always give no credibility to and see it as manipulation. The basher Barry Williams questions why a company would raise money. GE raised money and so did Facebook. Echo is a development company that is pre revenue and needs to access the capital markets from time to time to further their product line to be a successful company. How else can a medtech company pay for clinical trials and their engineers that are painstakingly working to create a superior product? That said, the comments regarding how the company should state that the "use of proceeds should be for the approval of Prelude" is ridiculous considering the company has developed this one product and partnered it as well. Of course proceeds go to this development, read the public filings and news releases. There is plenty of other work the company is doing like working on the bio sensor, running clinical trials that have been hugely successful thus far, communication and working with the FDA as well as networking within the industry to attract partner interest in what looks to be a revolutionary device that many people will benefit from. Other lies I see from Barry the Basher include LifeTech Capital being a shill for Echo. The company has many investment banks following them including JMP, Steifel Nicholas, Nobel, Chardan and others so I do not see the merit in this claim. I also looked into any connection with Aphton with LifeTech and it does not exist so this is a lie. Anyway, Echo is a NASDAQ listed company that requires proper capitalization so the company did the right thing by investors by securing their balance sheet to avoid delisting and pursue their goals. I give Pat Mooney a lot of credit for getting this done. It was a major accomplishment and he did so without having to pay underwriting fees...another major accomplishment for shareholders. He also was able to get Platinum Capital to further endorse the company by exercising $2M in warrants and coverting their preferred holdings which took any debt off the balance sheet. I must say I am pleased with this CEO's efforts and to date he has done right by me. The company now has approx. $9 million in cash. Thats also fantastic for shareholders since now the company can focus on fundamentals and we should be seeing them hit their milestones which means onward and upward from here. AS for trials being quick and dirty that is naive and obviously this comment came from someone who knows nothing. One of the more attractive aspects of this company is their ability to achieve clinical success with inexpensive small trials. This comes from the FDA and if you look at their nearest competitor Dexcom, they got approved with a 68 person pivotal trial. These studies produce thousands of data points of reference and thus far the data has been very promising and in line with other approved products. As for Prelude getting approved and creating more dilution, this is nonsense. What idiot would make a statement like this? If Prelude is approved, then investors will see HUGE returns on their investment. Anyway my next post will be my researched answers to the 10 Questions from Barry the Basher (Barry Williams)
alanc45 -- very well stated. However, freedom of speech doesn't enter in here. "Freedom of speech" is only relevant to the "crown" (more or less any representation of any gov't.) Same thing applied to the Great Moron Hank Williams Jr. when he so self-righteously claimed that ABC/ESPN denied him his F-O-S. A bit off-subject I guess, but I'm glad he's yesterdays' news and hope he stays that way forever. I sure like his Dad, tho.
The complaint here is about ECHO issuing stock at a below market price to a favorite few. The company should have made an offering to all shareholders giving them an ability to prevent dilution of their position. A rights offering would require a Registration Statement which would be costly and take time. However, with such a Registration Statement, ECHO could have raised substantially more cash which it will need to get final approval from the FDA and begin the marketing and manufacture of the products, all of which will cost money. With good forsight, management could have taken csare of all its future cash needs and done so by allowing all its shareholders to participate rather than giving a favority few opportunities to invest at below market prices. Management has a fiduciary obligation to treat all its shareholders equally and fairly. In this regard, management failed the majority of its shareholders. alcin