Echo Therapeutics, Inc. (NasdaqCM:ECTE) announced that it has entered into subscription agreements for the private placement of 211,000 series F preferred shares at a price of $1.50 per share for gross proceeds of $316,500 on September 24, 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 accredited investors, Platinum Management (NY) LLC for $150,000, Beijing Yi Tang Bio Science & Technology, Ltd. for $150,000, and RPSMSS, LLC for $16,500.

The company will issue the securities pursuant to exemption provided under Regulation D. The company will provide the investor with the right for a period of one year, at the investor's option, to convert all or any part of the shares and warrants in a future financing that yields gross proceeds of at least $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.