EnteroMedics prices $16.5M equity offering; shares down 21% premarket

|About: EnteroMedics Inc. (ETRM)|By:, SA News Editor

EnteroMedics (NASDAQ:ETRM) slumps 21% premarket on robust volume in response to the pricing of its public offering of Class A Units and Class B Units.

Each Class A Unit, priced at $5.31, consists of one share of common stock and one five-year warrant to purchase one share of common at $5.84.

Each Class B Unit, priced at $1,000, consists of one share of preferred stock, convertible into 188 common shares, and warrants to purchase 188 common shares.

A total of 751,412 shares of common stock, 12,531 shares of preferred stock convertible into 2,359,887 common shares and warrants to purchase 3,111,299 shares will be issued in the offering. Closing date is January 23.