ETRM---EnteroMedics Announces Pricing of $13 Million Public Offering of Common Stock and Warrants
Press Release: EnteroMedics
ST. PAUL, MN--(Marketwire - Feb 22, 2013) - EnteroMedics Inc., ( NASDAQ : ETRM ), the developer of medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders, today announced that it has priced an underwritten public offering of 13,770,000 shares of its common stock and warrants to purchase 5,508,000 shares of its common stock. Each share of common stock sold in this offering will be sold with a warrant to purchase 0.40 of a share of common stock. Each share and corresponding warrant will be sold at an aggregate price to the public of $0.95, for gross proceeds of $13,081,500. The net proceeds from the sale of the shares and corresponding warrants, after deducting the underwriter's discounts and other estimated offering expenses payable by the Company, will be approximately $12.0 million. The warrants are exercisable for a period of five years beginning on the closing date of the offering at an exercise price of $1.14 per share (120% of the aggregate offering price for a share of common stock and corresponding warrant).
The Company currently intends to use the net proceeds from this offering to continue work toward regulatory approval of the Maestro® RC System in the United States, for international commercialization efforts, for clinical and product development activities and for other working capital and general corporate purposes. The offering is expected to close on or about February 27, 2013, subject to the satisfaction of customary closing conditions.
Craig-Hallum Capital Group LLC is acting as the sole book-running manager for the offering.
A shelf registration statement (File No. 333-183313) relating to these securities was declared effective by the Securities and Exchange Commission on August 29, 2012. A preliminary prospectus supplement related to the offering was filed with the Securities and Exchange Commission. The securities may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. When available, copies of the final prospectus supplement and accompanying base prospectus related to this offering may be obtained from the Securities and Exchange Commission's website at http://www.sec.gov or by contacting Craig-Hallum Capital Group LLC, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, by calling 612-334-6300, or by emailing bart.federak@craig-hallum.com.
This press release does not constitute an offer to sell or the solicitation of offers to buy any securities of the Company, and shall not constitute an offer, solicitation or sale of any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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