EnteroMedics raises $61 million

EnteroMedics (NSDQ:ETRM) has raised $61 million in a new round of equity financing, according to an SEC filing posted this week.
Money in the round comes from 13 anonymous investors, with the 1st sale noted on October 2, according to the filing.
Funds raised represent the value of common stock issued or convertible from Series C convertible preferred stock, the liquidation of new preferred stock at $2.75 per share as well as $5 million in cash, according to the filing.
The fundraising comes shortly after St. Paul, Minn.-based Enteromedics agreed to pay approximately $38 million to acquire ReShape Medical.
The deal called for EnteroMedics to pay $5 million in cash, plus 2.4 million shares of stock and nearly 188,000 series C convertible shares. At the Oct. 2 closing price of $1.79 per ETRM share, the stock shares would be worth about $4.2 million, with the convertible shares worth another $33.6 million after conversion to nearly 18.8 million shares; EnteroMedics said it plans to hold a shareholder vote by the end of the year to approve the series C conversion.
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Source: Mass Device - October 18, 2017 Category: Medical Devices Authors: Fink Densford Tags: Business/Financial News EnteroMedics Inc. Source Type: news