Units sold to fund clinical and product development, working capital
By Devika Patel
Knoxville, Tenn., July 7 – EnteroMedics Inc. said it priced a $16 million public sale of units. The offering was announced Monday.
The company will sell 32 million units of one common share and one warrant at $0.50 per unit. Each whole warrant is exercisable at $0.60 for 42 months. The strike price is a 3.45% premium to the July 6 closing share price of $0.58.
Canaccord Genuity is the bookrunning manager.
Settlement is expected July 8.
Proceeds will be used for clinical and product development, working capital and general corporate purposes.
On Monday, the company cancelled plans for a $35 million public sale of units that priced on June 30. In that offering, EnteroMedics had planned to sell 40,229,886 units of one share and two half-share warrants at $0.87 per unit. Each whole series A warrant would have been exercisable at $1.00 for three years, and the whole series B warrant would have been exercisable at $1.09 for one year.
Canaccord Genuity was also the bookrunning manager for the cancelled offering.
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 one warrant
|
| Amount: | $16 million
|
| Units: | 32 million
|
| Price: | $0.50
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 42 months
|
| Warrant strike price: | $0.60
|
| Bookrunner: | Canaccord Genuity
|
| Co-manager: | Craig-Hallum Capital Group
|
| Announcement date: | July 6
|
| Pricing date: | July 7
|
| Settlement date: | July 8
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $0.58 at close July 6
|
| Market capitalization: | $29.76 million
|
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