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.