Terrapin commits to purchase common stock at discount over two years
By Devika Patel
Knoxville, Tenn., Oct. 4 - EnteroMedics Inc. negotiated a $45 million committed equity financing facility with Terrapin Opportunity, LP on Oct. 4, according to an 8-K and prospectus supplement filed Thursday with the Securities and Exchange Commission. Financial West Group is the agent.
Terrapin Opportunity has committed to purchase up to 8,312,122 of the company's common shares over two years. Each tranche will be limited to 20% of the company's market capitalization at the time.
The shares will be sold at a discount of 4% to 6.8% to the daily volume weighted average price of the stock.
Terrapin will also be paid $35,000 in fees.
Proceeds will be used to work towards obtaining regulatory approval of the company's product in the United States, for international commercialization efforts, clinical and product development activities and other working capital and general corporate purposes.
St. Paul, Minn.-based EnteroMedics develops implantable systems for the treatment of obesity and other gastrointestinal disorders.
| Issuer: | EnteroMedics Inc.
|
| Issue: | Committed equity financing facility
|
| Amount: | $45 million
|
| Tenor: | Two years
|
| Shares: | 8,312,122 (maximum)
|
| Price: | Discount of 4% to 6.8%
|
| Warrants: | No
|
| Agent: | Financial West Group
|
| Investor: | Terrapin Opportunity, LP
|
| Fees: | $35,000
|
| Settlement date: | Oct. 4
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $3.81 at close Oct. 3
|
| Market capitalization: | $159.74 million
|
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