EnteroMedics Enters Into $20.0 Million "At-the-Market" Equity Distribution Agreement With Canaccord Genuity

EnteroMedics Enters Into $20.0 Million "At-the-Market" Equity Distribution 
Agreement With Canaccord Genuity 
ST. PAUL, MN -- (Marketwired) -- 07/31/13 --  EnteroMedics Inc.
(NASDAQ: ETRM), the developer of medical devices using neuroblocking
technology to treat obesity, metabolic diseases and other
gastrointestinal disorders, today announced that it has entered into
an "at-the-market" (ATM) equity distribution agreement with Canaccord
Genuity Inc. acting as sole agent. Under the terms of the
distribution agreement, the Company may, from time to time, sell
shares of its common stock having an aggregate offering value of up
to $20.0 million through Canaccord Genuity. The Company will
determine, at its sole discretion, the timing and number of shares to
be sold under this ATM facility. The ATM facility is intended to
replace the Company's $45.0 million equity financing facility with
Terrapin Opportunity, L.P., which has been discontinued. 
"With $23.3 million in current cash and equivalents, and the ability
to sell shares under our new ATM facility, EnteroMedics will have the
necessary resources to continue executing on its pivotal regulatory
strategy and commercialization activities into 2014," said Greg S.
Lea, Senior Vice President, Chief Financial Officer and Chief
Operating Officer. 
A shelf registration statement (SEC File No. 333-183313) relating to
these securities was declared effective by the Securities and
Exchange Commission on August 29, 2012. The securities may be offered
only by means of a prospectus, including a prospectus supplement,
forming a part of the effective registration statement. When
available, copies of the prospectus supplement and accompanying base
prospectus related to the ATM offering may be obtained from the
Securities and Exchange Commission's website at http://www.sec.gov or
by contacting Canaccord Genuity Inc., Attention: Syndicate
Department, 99 High Street, 12th Floor, Boston, Massachusetts 02110,
by telephone at 617-371-3900 or by email at
USecm@canaccordgenuity.com. 
This press release does not constitute an offer to sell or the
solicitation of offers to buy any securities of the Company, and
shall not constitute an offer, solicitation or sale of any security
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction. 
About EnteroMedics Inc.  
EnteroMedics is a medical device company focused on the development
and commercialization of its neuroscience based technology to treat
obesity and metabolic diseases. EnteroMedics' proprietary technology,
VBLOC(R) vagal blocking therapy, delivered by a pacemaker-like device
called the Maestro(R) Rechargeable System, is designed to
intermittently block the vagus nerves using high-frequency,
low-energy, electrical impulses. VBLOC allows people with obesity to
take a positive path towards weight loss, addressing the lifelong
challenge of obesity and its comorbidities without sacrificing
wellbeing or comfort. EnteroMedics' Maestro Rechargeable System has
received CE Mark and is listed on the Australian Register of
Therapeutic Goods.  
Forward-Looking Safe Harbor Statement:  
This press release contains forward-looking statements about
EnteroMedics Inc. Our actual results could differ materially from
those discussed due to known and unknown risks, uncertainties and
other factors including our limited history of operations; our losses
since inception and for the foreseeable future; our lack of
commercial regulatory approval for our Maestro(R) System for the
treatment of obesity in the United States or in any foreign market
other than Australia and the European Community; our preliminary
findings from our EMPOWER(TM) and ReCharge pivotal trials; our
ability to comply with the Nasdaq continued listing requirements; our
ability to commercialize our Maestro System; our dependence on third
parties to initiate and perform our clinical trials; the need to
obtain regulatory approval for any modifications to our Maestro
System; physician adoption of our Maestro System and VBLOC(R) vagal
blocking therapy; our ability to obtain third party coding, coverage
or payment levels; ongoing regulatory compliance; our dependence on
third party manufacturers and suppliers; the successful development
of our sales and marketing capabilities; our ability to raise
additional capital when needed; international commercialization and
operation; our ability to attract and retain management and other
personnel and to manage our growth effectively; potential product
liability claims; potential healthcare fraud and abuse claims;
healthcare legislative reform; and our ability to obtain and maintain
intellectual property protection for our technology and products.
These and additional risks and uncertainties are described more fully
in the Company's filings with the Securities and Exchange Commission,
particularly those factors identified as "risk factors" in the annual
report on Form 10-K filed March 7, 2013. We are providing this
information as of the date of this press release and do not undertake
any obligation to update any forward-looking statements contained in
this document as a result of new information, future events or
otherwise.  
Caution - Investigational device. Limited by Federal (United States)
law to investigational use.  
The implantation procedure and usage of the Maestro(R) System carry
some risks, such as the risks generally associated with laparoscopic
procedures and those related to treatment as described in the
ReCharge clinical trial informed consent.  
Contact:
EnteroMedics Inc.
Greg S. Lea
(651) 789-2860
ir@enteromedics.com 
 
 
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