The Iselin, N.J.-based company had until July 5 to show $2.5 million in shareholder equity but failed to meet the deadline. ECTE shares are due to begin trading on the OTCQB board tomorrow.
“The progress that we have made in the development of our NextGen CGM system has begun to make a positive difference in the performance and outlook of the company, but other recent factors negatively impacting the stock price don’t currently make it possible to comply with Nasdaq continued listing criteria,” president & CEO Scott Hollander said in prepared remarks. “While we anticipate trading on the OTCQB, we remain focused on our R&D efforts to bring our technology to market.”
Last month Echo Therapeutics said it began stand-alone component and integrated testing of its NextGen continuous glucose monitoring system prototypes and selected a clinical research organization to aid it in arranging a regulatory and clinical strategy.
Echo company is developing a non-invasive, wireless CGM for use in the outpatient diabetes market and the fitness, weight loss and personal lifestyle wearable-health space.
ECTE shares closed up 29.7% at $1.79 apiece July 8.