Company offers 2,271,705 shares at $2.223 apiece through Craig-Hallum
By Devika Patel
Knoxville, Tenn., April 17 - EnteroMedics Inc. said it has arranged a $5.05 million registered direct offering of stock on April 16, according to an 8-K and prospectus supplement filed Tuesday with the Securities and Exchange Commission.
The company will sell 2,271,705 common shares at $2.223 apiece. The price per share reflects a 4.59% discount to the April 13 closing share price of $2.33.
Craig-Hallum Capital Group LLC is the agent.
Settlement is expected April 20.
Proceeds will be used to work toward 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.
The company also said it has negotiated a $20 million term loan agreement with Silicon Valley Bank under which Silicon Valley Bank will make term loans to the company.
St. Paul, Minn.-based EnteroMedics develops implantable systems for the treatment of obesity and other gastrointestinal disorders.
| Issuer: | EnteroMedics Inc.
|
| Issue: | Common stock
|
| Amount: | $5.05 million
|
| Shares: | 2,271,705
|
| Price: | $2.223
|
| Warrants: | No
|
| Agent: | Craig-Hallum Capital Group LLC
|
| Pricing date: | April 16
|
| Settlement date: | April 20
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $2.33 at close April 13
|
| Market capitalization: | $87.85 million
|
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