By Devika Patel
Knoxville, Tenn., Feb. 20 - EnteroMedics Inc. said it plans a private placement of stock for $15.08 million.
The company will sell 13,110,393 common shares at $1.15 apiece and warrants for 6,555,197 shares.
Each warrant is exercisable at $1.38 for four years.
Canaccord Adams Inc. is the agent.
Settlement is expected on Feb. 24.
Proceeds will be used to fund clinical studies of VBLOC Therapy in obesity, hypertension and diabetes, submission for regulatory approval of the Maestro System in the treatment of obesity, as well as for general working capital purposes.
St. Paul, Minn.-based EnteroMedics develops implantable systems for the treatment of obesity and other gastrointestinal disorders.
| Issuer: | EnteroMedics Inc.
|
| Issue: | Common stock
|
| Amount: | $15,076,952
|
| Shares: | 13,110,393
|
| Price: | $1.15
|
| Warrants: | For 6,555,197 shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $1.38
|
| Agent: | Canaccord Adams Inc.
|
| Pricing date: | Feb. 20
|
| Settlement date: | Feb. 24
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $1.17 at close Feb. 19
|
| Market capitalization: | $19.2 million
|
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