St. Paul, Minn.-based EnteroMedics won FDA approval for the 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.
Each share in the offering consists of a share of common stock, Series A warrants to purchase common stock and Series B warrants to purchase common stock, the company said. Canaccord Genuity is the book-runner and Craig-Hallum Capital Group is co-manager for the flotation, which has yet to price, EnteroMedics said.
The company said it plans to use the proceeds to further the commercialization for Maestro, which saw its 1st commercial implantation last month. The cash will also be used for clinical work, product development and other working capital and corporate needs, EnteroMedics said.