Deal funds commercialization efforts, clinical and product development
By Devika Patel
Knoxville, Tenn., Feb. 22 - EnteroMedics Inc. said it priced a $13.08 million public sale of units. The offering was announced Thursday.
The company will sell 13.77 million units of one common share and 0.4 warrants at $0.95 per unit. Each whole warrant will be exercisable at $1.14 for five years. The strike price is a 1.79% premium to the Feb. 21 closing share price of $1.12.
Craig-Hallum Capital Group LLC is the bookrunning manager.
Settlement is expected Feb. 27.
Proceeds will be used to work toward regulatory approval of the Maestro RC System 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: | Units of one common share and 0.4 warrants
|
| Amount: | $13,081,500
|
| Units: | 13.77 million
|
| Price: | $0.95
|
| Warrants: | 0.4 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.14
|
| Bookrunner: | Craig-Hallum Capital Group LLC
|
| Announcement date: | Feb. 21
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $1.12 at close Feb. 21
|
| Market capitalization: | $37.9 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
