EnteroMedics prices $20m preferred stock offering

EnteroMedics (NSDQ:ETRM) today priced an upcoming underwritten public offering looking to raise $20 million to support continued commercialization and product development. In the offering, the company will offer units at $1,000 per unit, with each consisting of 1 share of Series B convertible preferred stock, convertible into 435 shares of common stock at $2.30 per share, and a 7-year warrant to purchase 435 shares of common stock also at $2.30 per share. Preferred stock offered in the round will include a beneficial ownership blocker but has no dividend rights, the St. Paul, Minn.-based company said. A total of 20,000 shares of preferred stock, convertible into 8.7 million shares, and warrants for an additional 8.7 million shares will be sold in the offering, the company said in a press release. The offering is expected to close August 16. Last month, EnteroMedics said it won approval from Spain’s Ministry of Health, Social Services and Equality to initiate a clinical trial of its Gastric Vest system in Spain. See the best minds in medtech live at DeviceTalks Boston on Oct. 2. The post EnteroMedics prices $20m preferred stock offering appeared first on MassDevice.
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Wall Street Beat EnteroMedics Inc. Source Type: news