Proceeds fund work on Maestro RC System; Craig-Hallum is underwriter
By Devika Patel
Knoxville, Tenn., Sept. 23 - EnteroMedics Inc. priced a $14.52 million public offering of units in a prospectus supplement filed Friday with the Securities and Exchange Commission. The offering was announced Thursday.
The company will sell 8.8 million units of one common share and 0.2 warrants at $1.65 per unit, with each whole five-year warrant exercisable at $1.90.
The strike price is a 2.15% premium to the Sept. 22 closing share price of $1.86.
Craig-Hallum Capital Group LLC is the underwriter.
Settlement is expected Sept. 28.
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 0.2 warrants
|
| Amount: | $14.52 million
|
| Units: | 8.8 million
|
| Price: | $1.65
|
| Warrants: | 0.2 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.90
|
| Underwriter: | Craig-Hallum Capital Group LLC
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| Announcement date: | Sept. 22
|
| Pricing date: | Sept. 23
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Nasdaq: ETRM
|
| Stock price: | $1.86 at close Sept. 22
|
| Market capitalization: | $46.05 million
|
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