UPDATED July 7, 2015, with pricing information.

EnteroMedics (NSDQ:ETRM) today priced a retooled follow-on offering, which it hoped would raise $35 million, saying it now hopes to bring in $16 million.

St. Paul, Minn.-based EnteroMedics initially planned to float 40.2 million shares at 87¢ apiece, for gross proceeds of $35 million. The 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 company was informed by the NASDAQ Capital Market that it was not willing to approve the transaction pursuant to its original terms,” EnteroMedics said yesterday.

The new offering, of 32 million shares at 50¢ apiece, is slated to comprise 1 ETRM share plus Series A warrants, the company said. Canaccord Genuity is 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 for Maestro, which saw its 1st commercial implantation in May.