Platinum-Montaur Life Sciences has agreed to provide Echo Therapeutics, a transdermal medical device company, a credit facility of up to $20 million.

Platinum-Montaur believes the transaction will provide Echo with the capital resources needed to implement Echo's plans to commercialize its needle-free Symphony tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system.

The commitment letter provides that Echo may 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 Platinum-Montaur four million warrants with a term of five years and an exercise price of $2 per share. Additionally, Echo will issue one 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 T. Mooney, chairman and 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."