A Medical Device Daily

Echo Therapeutics (Franklin, Tennessee), a diagnostics and pharmaceuticals company, reported completing a private financing of roughly $2.3 million, with Montaur Capital through Platinum Long Term Growth VII and certain other investors, of senior unsecured convertible notes and warrants.

The $2,292,459 of senior convertible notes in the financing will bear interest at a rate of 8.0% per year and provide investors with the right to convert principal into shares of Echo common stock at $1.35 a share. The notes have a three-year term and Echo may elect to make payments of interest in cash, additional notes or stock.

The investors also received warrants to purchase 849,058 shares of common stock at an $1.69 a share for a five-year term.

Certain holders of Echo’s senior promissory bridge notes, dated Sept. 14, 2007, exchanged their notes at 120% of the outstanding principal and interest of the bridge note as payment toward the purchase of the senior convertible notes. Accordingly, Echo issued notes in the financing of $1,592,459 to the former holders of the bridge notes upon their surrender, and Echo received gross proceeds of $700,000 in connection with the financing.

Echo said it expects to use the proceeds for product development, working capital and general corporate purposes.

Echo’s Symphony CTGM System is a new needle-free, wireless, continuous transdermal glucose monitoring system, which it says is focused on “changing the paradigm” of invasive, episodic glucose testing in diabetes home use and hospital critical care settings. Its AzoneTS transdermal drug delivery technology is part of a pipeline of reformulations of FDA-approved specialty pharmaceutical products.

Third Wave Technologies (Madison, Wisconsin) reported that it has filed a shelf registration statement with the SEC to sell up to $100 million of securities.

The company said it has no specific plans to offer the securities covered by the statement and is not required to offer the securities in accordance with the statement. The terms of any offering will be established at the time of the offering.

Third Wave develops diagnostic reagents for a variety of DNA and RNA analysis applications. The company offers products based on its Invader chemistry for clinical testing. It offers in vitro diagnostic kits, and analyte-specific, general purpose, and research-use-only reagents for nucleic acid analysis.

In other financing news:

• Advance Nanotech (New York), a developer of chemical detection systems, reported that at a special meeting of shareholders on Feb. 12, a proposal was approved to increase the authorized number of shares of capital stock from 100 million to 225 million.

With the approval, Advance will close the remaining portion of its private placement sale of 8% convertible notes 2010, which occurred in December, and will issue to the original convertible note holders additional notes in the aggregate principal amount of about $2.75 million and warrants to purchase 5,494,000 shares of common stock.

“This is a pivotal day for Advance Nanotech and its shareholders,” said Magnus Gittins, chairman of Advance. “As our technology is at commercialization, we have been afforded the opportunity to aggressively market our capability while controlling costs and capturing full earnings potential. As of today, the strengthened financial condition of the company now allows us to provide forward looking financial guidance for the first time.

“The company anticipates achieving approximately $7.7 million in revenues for its 2008 fiscal year and despite forecasting a net operating loss, expects that its fourth quarter is to generate both positive earnings and cash flow.”

Advance said it is transitioning to become an operating company focused on next-generation chemical and biological detection. It says that its technologies “are uniquely silicon-based thus offering the benefits of miniaturization and network capability.”