St. Paul, Minn.-based EnteroMedics initially planned to float 40.2 million shares at 87¢ apiece,for gross proceeds of $35 million. That offering was to have consisted of 1 ETRM share, plus Series A and Series B warrants. But the company was forced to cancel the issue after the NASDAQ Capital Market said wouldn’t approved the transaction.
Instead, EnteroMedics retooled the offering to 32 million shares at 50¢ apiece, comprised of 1 ETRM share plus Series A warrants.
Canaccord Genuity was the sole book-running manager, with Craig-Hallum Capital Group as co-manager and Northland Securities and Roth Capital Partners as financial advisors, EnteroMedics said.
The company won FDA approval for its flagship Maestro device in January 2015, following a mixed vote last year after the device failed to meet its efficacy endpoint in a clinical trial. It’s designed to use what EnteroMedics calls “vBloc therapy,” in which electrical pulses are used to block intra-abdominal vagus nerve signaling between the brain and stomach using a pacemaker-like device.
The company has said it plans to use the funds to further the commercialization of Maestro, which saw its 1st commercial implantation in May.