The weight-loss neurostimulation devices maker filed documents with the SEC granting existing shareholders permission to sell more than 865,000 shares of the company’s common stock, from which the company won’t see any proceeds.
EnteroMedics may also issue more than 1.7 million shares of common stock pending the exercise of warrants the device maker issued last September, according to regulatory filings.
EnteroMedics is a development-stage company working on devices that stimulate the vagus nerve with high frequency, low energy electrical impulses in order to treat obesity.
The device maker earlier this year implanted the 1st patients with its Maestro rechargeable neuroblocker, a system using a pair of small electrodes that are implanted in the vagus nerve between the esophagus and the stomach to affect sensations of hunger and fullness.
The Maestro weight-loss system has regulatory approval in Australia and CE Mark approval in the European Union. Funds from the company’s stock sale will partially go toward U.S. regulatory approval, as well as for general corporate purposes, according to SEC filings.
ETRM shares rose 1.6% to $2.94 in morning trading as of about 11:30 a.m. today.
Shareholders participating in the sale include MPM BioVentures III, Aberdare Ventures II and Bay City Capital Fund, according to SEC filings.