EnteroMedics prices $20m preferred stock offering

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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.

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