A Medical Device Daily Staff Report

Echo Therapeutics (Philadelphia), a company developing its needle-free Symphony tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system and its Prelude SkinPrep System for transdermal drug delivery, said Platinum-Montaur Life Sciences (Montaur; New York) will provide Echo a credit facility of up to $20 million. The company believes that this transaction will provide Echo with the capital resources needed to implement Echo's plans to commercialize Symphony.

The commitment letter provides that Echo will be able to borrow up to $5 million initially, at 10% interest per annum. Upon attaining certain key regulatory and clinical study objectives, the credit facility will increase in $3 million increments, with a maximum increase of $15 million.

On closing, Echo will issue Montaur 4 million warrants with a term of five years and an exercise price of $2 per share. Additionally, Echo will issue 1 million five year warrants per $1 million borrowed, with an exercise price ranging from $2 to $4 per share, depending on the market price of Echo's common stock at the time of the applicable draw. The loan matures five years from the date of closing.

"We are pleased that this new facility allows us to balance our capital structure while attempting to minimize dilution to our shareholders. We believe the increased liquidity and financial flexibility provided by this financial commitment will enhance our ability to aggressively move Symphony toward regulatory clearance in both Europe and the United States," said Patrick Mooney, MD, chairman/CEO of Echo Therapeutics. "Montaur has proven to be a trusted source for our financing needs, and has demonstrated continued confidence in Echo with their on-going participation in funding our growth."

In other financings activity:

• CTS (Elkhart, Indiana) reported that its board authorized the repurchase of up to one million of its outstanding shares of common stock, for cash, in the open market on the New York Stock Exchange or in privately negotiated transactions.

The one million shares would represent about 3% of the company's 33.9 million outstanding shares of common stock. On July 5, 2012, CTS completed a previously authorized buyback program of one million shares. The purchases will be made from generally available funds of the company. The amount, timing and price of purchases will depend on market conditions and other factors.

• NeuWave Medical (Madison, Wisconsin), a company that developed the Certus 140 Ablation System, a device that uses energy to coagulate and ablate soft tissue said that it has raised $14 million and is seeking another $5 million.

Investors include, Venture Investors along with John Murphy, president/CEO of NDS Surgical (San Jose, California).

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