Trouble has been at the door of glucose monitoring device company Echo Therapeutics, Inc. for some time, including a furore leading to changes of CEO, shedding of a third of the workforce and a right old to do with major shareholder Platinum Group going back to last August. Now Echo has issued a letter to its shareholders which questions (in no uncertain terms) the motivations of Platinum in trying to get its own man onto the board.
Echo Therapeutics’ board has been under attack from what it calls dissident shareholder Platinum Management for months now, the group having previously (and very publicly) denounced the capabilities of Echo management and questioned its stewardship of the company.
Now it’s come to a(nother) head with the impending appointment of a new board member. Platinum wants its man in there. Echo’s board clearly doesn’t and has issued its letter to make sure shareholders of the remaining 80% of the stock understand their position. It’s pretty damning stuff, that can be found in a press release issued by Echo’s board, and visible here.
The Platinum Group is led by Platinum Management (NY) LLC and is pursuing a proxy contest to elect Shepard M. Goldberg to the Echo Board at Echo’s 2014 Annual Meeting of Stockholders in opposition to what Echo refers to as its highly qualified and very experienced director and Interim CEO, Robert F. Doman.
It’s a tricky one this, because Platinum are understandably not all that chuffed at the 95% decline in share value over the past few years. Echo’s plans to dig itself out of the hole include this new appointment and it is determined to get Robert Doman in the seat. Platinum is equally intent on getting its own man into the chair, an individual described by Echo as having spent the majority of his career working for a swimming pool products company.
If you’re not a shareholder in Echo, it makes interesting reading. If you are, then moreso, but you have to question whether this is doing the company any good, however unavoidable it may look.
We’ll keep you posted.