Enteromedics closes $18m preferred stock offering

EnteroMedics (NSDQ:ETRM) said it closed its recent public preferred stock offering, raising a total of $18.1 million which is slated to support continued commercialization efforts, clinical and product development and general corporate purposes. In the offering, the company sold preferred stock 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. The St. Paul, Minn.-based company said that certain purchasers chose to convert units of Series B into common stock immediately, and the company currently has 10.2 million shares of common stock outstanding and 15,664 shares of Series B preferred stock. Enteromedics said it also issued warrants to purchase an aggregate of 2.6 million shares of common stock related to a securities purchase agreement dated Nov. 4, 2015. EnteroMedics shares are down 3% so far today, at $1.91 as of 10:50 a.m. EDT. 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 closes $18m 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