We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Echo Therapeutics Delisted from Nasdaq, Shares Plummet
Read MoreHide Full Article
Shares of Echo Therapeutics Inc. (ECTE - Free Report) plunged 17.3% to close at $1.48 on Jul 11, after the company announced that it has received a delisting notice from the Nasdaq stock market. The company announced that it expects to start trading on the OTCQB Venture Market, operated by the OTC Markets Group Inc. under its current trading symbol "ECTE” from Jul 12.
The delisting resulted from Echo Therapeutics’ failure to comply with Nasdaq’s minimum shareholder equity requirement. Previously, the company had been granted an extension by the Nasdaq Hearing Panel to show compliance with the requirement of a minimum $2.5 million in stockholders' equity by Jul 5. However, the company failed to meet the terms that resulted in its delisting.
Echo Therapeutics is a medical device company currently focusing on developing non-invasive continuous glucose monitoring (CGM) system. The company recently started testing of its NextGen CGM system and also selected a Clinical Research Organization (CRO) to initiate the clinical and regulatory process towards product approval.
Per Echo Therapeutics “NextGen CGM system is more consumer-friendly and substantially less expensive than the prior version. The new streamlined design includes a self-use exfoliator, a new exfoliator tip, a more sensitive sensor element with increased consistency, and a reusable transmitter and battery. Transmitted glucose information is displayed on a new CGM App using Echo's API technology.”
Recently, Echo Therapeutics announced the receipt of Institutional Review Board’s approval for a new clinical protocol, which allows expanded testing of its CGM system. Based on the approval, the company now can recruit both pediatric and adult subjects for its internal and external studies.
Echo Therapeutics also received a new patent granted by Japan, which covers its system and methods for transdermal monitoring of analytes, including glucose and other substances. The new patent cover will help the company aggressively pursue business development opportunities in the country.
Nevertheless, we believe that the delisting from the Nasdaq will overshadow all these positive developments at least in the near-term. The delisting hurts Echo Therapeutics credibility among investors, which can eventually dry-up capital funding sources that will put the company’s operations into jeopardy.
Key Picks
Abiomed , Mesa Laboratories (MLAB - Free Report) and Masimo Corp (MASI - Free Report) are some of the better-ranked stocks in the same space. While Abiomed and Mesa sports Zacks Rank #1 (Strong Buy), Masimo carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Echo Therapeutics Delisted from Nasdaq, Shares Plummet
Shares of Echo Therapeutics Inc. (ECTE - Free Report) plunged 17.3% to close at $1.48 on Jul 11, after the company announced that it has received a delisting notice from the Nasdaq stock market. The company announced that it expects to start trading on the OTCQB Venture Market, operated by the OTC Markets Group Inc. under its current trading symbol "ECTE” from Jul 12.
The delisting resulted from Echo Therapeutics’ failure to comply with Nasdaq’s minimum shareholder equity requirement. Previously, the company had been granted an extension by the Nasdaq Hearing Panel to show compliance with the requirement of a minimum $2.5 million in stockholders' equity by Jul 5. However, the company failed to meet the terms that resulted in its delisting.
Echo Therapeutics is a medical device company currently focusing on developing non-invasive continuous glucose monitoring (CGM) system. The company recently started testing of its NextGen CGM system and also selected a Clinical Research Organization (CRO) to initiate the clinical and regulatory process towards product approval.
Per Echo Therapeutics “NextGen CGM system is more consumer-friendly and substantially less expensive than the prior version. The new streamlined design includes a self-use exfoliator, a new exfoliator tip, a more sensitive sensor element with increased consistency, and a reusable transmitter and battery. Transmitted glucose information is displayed on a new CGM App using Echo's API technology.”
Recently, Echo Therapeutics announced the receipt of Institutional Review Board’s approval for a new clinical protocol, which allows expanded testing of its CGM system. Based on the approval, the company now can recruit both pediatric and adult subjects for its internal and external studies.
ECHO THERAPEUT Price and Consensus
ECHO THERAPEUT Price and Consensus | ECHO THERAPEUT Quote
Echo Therapeutics also received a new patent granted by Japan, which covers its system and methods for transdermal monitoring of analytes, including glucose and other substances. The new patent cover will help the company aggressively pursue business development opportunities in the country.
Nevertheless, we believe that the delisting from the Nasdaq will overshadow all these positive developments at least in the near-term. The delisting hurts Echo Therapeutics credibility among investors, which can eventually dry-up capital funding sources that will put the company’s operations into jeopardy.
Key Picks
Abiomed , Mesa Laboratories (MLAB - Free Report) and Masimo Corp (MASI - Free Report) are some of the better-ranked stocks in the same space. While Abiomed and Mesa sports Zacks Rank #1 (Strong Buy), Masimo carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>