The $2.30 million in aggregate principal amount of senior convertible notes to be issued in the financing will bear interest annually at a rate of eight percent per annum and will provide investors with the right to convert principal into shares of Echo Therapeutics common stock at $1.35 per share. Additionally, the investors received warrants to purchase 849,058 shares of common stock at an exercise price of $1.69 per share for a term of five years.
Echo expects to use the net proceeds from the offering for product development, working capital and general corporate purposes.