EndoStim officially spikes $35m IPO

EndoStim today officially spiked an initial public offering it hoped would raise $35 million for its neurostimulation device for gastroesophageal reflux disease. EndoStim, which had planned to put $10 million of the IPO’s proceeds into clinical studies and another $14 million to commercialize the system, tabled the offering in October 2014. Today the company filed a formal withdrawal request with the U.S. Securities & Exchange Commission, citing “market conditions.” EndoStim is operating from a small headquarters in St. Louis where it employs 13 people, including CEO Bevil Hogg, who took Stereotaxis (NSDQ:STXS) public in a 2004 IPO that raised $44 million. Santé Health Ventures was the biggest contributor to some $26 million in funding EndoStim secured across three rounds between 2010 and 2014, with the Austin, Texas-based life-sciences investor holding 19% of EndoStim shares heading into the IPO. The company said the IPO could reach $35.8 million if underwriters exercise their over-allotment. Wedbush Securities was to be the lead underwriter alongside Craig-Hallum Capital Group and Roth Capital Partners. EndoStim was aiming to sell 3.2 million shares on the NASDAQ exchange under the STIM symbol, priced between $10 and $12 per share. EndoStim describes its system in form and function to a pacemaker, with the device delivering low-level electrical stimulation to the lower esophageal sphincter, a muscle at the junction of the esophagus and stomach. The com...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Neuromodulation/Neurostimulation Initial Public Offering (IPO) Funding Roundup EndoStim Source Type: news