Brokered deal conducted by Canaccord Genuity to fund working capital
By Devika Patel
Knoxville, Tenn., Sept. 30 - EnteroMedics Inc. said it has arranged a private placement of series A non-voting convertible preferred stock with agent Canaccord Genuity Inc.
The company will sell about 3.4 million preferreds at $1.72 apiece and about 3.4 million warrants at $0.125 apiece to raise $6.27 million. The price per preferred is equal to the closing bid price of the company's common stock on Sept. 29.
The warrants are each exercisable at 125% of the preferred purchase price, or $2.15.
Proceeds will be used 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: | Series A non-voting convertible preferred stock
|
| Amount: | $6,273,000
|
| Preferreds: | 3.4 million (approximate)
|
| Price: | $1.72
|
| Warrants: | About 3.4 million (at $0.125 apiece)
|
| Warrant strike price: | $2.15
|
| Agent: | Canaccord Genuity Inc.
|
| Pricing date: | Sept. 30
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $1.72 at close Sept. 29
|
| Market capitalization: | $12.56 million
|
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