Delaware | 48-1293684 | |
(State or other jurisdiction of | (IRS Employer | |
incorporation) | Identification No.) |
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
As described in the Original 8-K, on November 21, 2008, SVB and WTI each closed on the funding of a Term Loan in the aggregate principal amount of $10.0 million and $5.0 million, respectively, under the Loan Agreement. The Loan Agreement provided that the additional $5.0 million draw from Horizon was to be available and automatically fund under the terms of the Loan Agreement if and when the trading pric e of our common stock on the NASDAQ Global Market met or exceeded a target amount on or before June 30, 2009. The Company's trading price recently achieved this target amount and therefore, on April 28, 2009, the automatic funding of the additional $5.0 million from Horizon was made to the Company under the Term Loan funding arrangement established under the Loan Agreement.
Under the terms of the Loan Agreement, as part of the Term Loan draw from Horizon, on April 28, 2009 the Company issued a warrant (the "Warrant") to Horizon to purchase an aggregate number of shares equal to $495,000 divided by the exercise price of the Warrant. The Warrant gives Horizon the option to purchase either (i) shares of the Company's common stock with a per share exercise price equal to $1.668, or (ii) shares of the Company's stock (including common stock) issued in an equity financing that occurs after the Warrant issue date and on or before May 18, 2010 at the per share price of the stock sold in the financing.
Informa tion relating to the funding arrangement and the related agreements was summarized in the Original 8-K, which is incorporated herein by reference. The foregoing summary of the funding arrangement and the related agreements is qualified in its entirety by reference to the full texts of the Loan Agreement filed as an exhibit to the Original 8-K and the form of Warrant, which was filed with the SEC as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2008, all of which are incorporated herein by reference.
EnteroMedics Inc. | ||||||||
Date: April 29, 2009 | By: | /s/ Greg S. Lea | ||||||
Greg S. Lea | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||