September 17, 2007
Sontra, N.C. co. agree to merger
By Matthew L. Brown
Franklin's Sontra Medical Corp. and Durham, N.C.-based Echo Therapeutics Inc. have agreed to merge the two transdermal drug delivery companies.
Under the merger agreement, the combined company will be publicly held and known as Echo Therapeutics Inc. Sontra will acquire all outstanding shares of Echo common stock in exchange for 6.2 million shares of Sontra stock. The new company will have its corporate headquarters in Philadelphia, Penn. and research and development facilities in Franklin and Durham, N.C.
Harry G. Mitchell of Sontra will become the new company's COO and CFO. For the second quarter of 2007, Sontra reported a net loss of just over $1 million on revenue of $14,853.
Sontra makes glucose monitoring patches. Echo develops drugs that are delivered through the skin.
Under threat of being delisted by Nasdaq last December, Sontra announced it was laying off all its employees and shutting down. But in a last-minute deal, the investment banker Burnham Hill Partners, along with company managers, bought up about two-thirds of the company's stock and put $600,000 into the company to keep it afloat.
Burnham Hill served as financial advisor for the merger and also advised the companies on $1.3 million in financing to investors.
Under the merger agreement, the combined company will be publicly held and known as Echo Therapeutics Inc. Sontra will acquire all outstanding shares of Echo common stock in exchange for 6.2 million shares of Sontra stock. The new company will have its corporate headquarters in Philadelphia, Penn. and research and development facilities in Franklin and Durham, N.C.
Harry G. Mitchell of Sontra will become the new company's COO and CFO. For the second quarter of 2007, Sontra reported a net loss of just over $1 million on revenue of $14,853.
Sontra makes glucose monitoring patches. Echo develops drugs that are delivered through the skin.
Under threat of being delisted by Nasdaq last December, Sontra announced it was laying off all its employees and shutting down. But in a last-minute deal, the investment banker Burnham Hill Partners, along with company managers, bought up about two-thirds of the company's stock and put $600,000 into the company to keep it afloat.
Burnham Hill served as financial advisor for the merger and also advised the companies on $1.3 million in financing to investors.
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