Echo Therapeutics, Inc. (NasdaqCM:ECTE) announced that it has entered into an agreement for private placement of 99,000 series F preferred shares at a price of $1.50 per share for gross proceeds of $148,500 on August 27, 2015. The company will also issue five years warrants to purchase the same amount of common shares exercisable at a price of $3 per share. The transaction will include participation from existing investors, Platinum Partners and Beijing Yi Tang Bio Science & Technology, Ltd., for $82,500 by subscribing for 55,000 shares and $66,000 by subscribing for 44,000 shares.

The company will issue securities pursuant to exemption provided under Regulation D. The company will provide the investor with the right for a period of one year to convert the shares and warrants in a future financing that yields gross proceeds of $2,000,000. The investor will have a right to participate in all future financings of the company to maintain their current holdings in the company, for a period of two years. The investors will not own more than 9.99% stake in the company upon conversion of shares and exercise of warrants.