Units sold to fund clinical and product development, working capital
By Devika Patel
Knoxville, Tenn., June 30 – EnteroMedics Inc. said it priced a $35 million public sale of units. The offering was announced Monday.
The company will sell 40,229,886 units of one common share and two half-share warrants at $0.87 per unit. Each whole series A warrant is exercisable at $1.00 for three years. The whole series B warrant is exercisable at $1.09 for one year. The strike prices are 3.09% and 12.37% premiums to the June 29 closing share price of $0.97.
Canaccord Genuity is the bookrunning manager.
Settlement is expected July 6.
Proceeds will be used for clinical and product development, 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 two half-share warrants
|
| Amount: | $35 million
|
| Units: | 40,229,886
|
| Price: | $0.87
|
| Warrants: | Two half-share warrants per unit
|
| Warrant expiration: | Three years (series A), one year (series B)
|
| Warrant strike price: | $1.00 (series A), $1.09 (series B)
|
| Bookrunner: | Canaccord Genuity
|
| Co-manager: | Craig-Hallum Capital Group
|
| Announcement date: | June 29
|
| Pricing date: | June 30
|
| Settlement date: | July 6
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $0.97 at close June 29
|
| Market capitalization: | $47.02 million
|
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