EnteroMedics Inc. (NASDAQ: ETRM) is planning to provide a commercialization update for its product called vBloc. The update will be issued at a conference call on June 1, 2016. The company’s CEO, Dan W. Gladney, will lead the call.
For background, EnteroMedics Inc. (NASDAQ: ETRM) is engaged in the business of developing medical devices based on what is called neuroblocking technology. The devices are used to treat obesity and metabolic diseases among others. Therefore, vBloc is a member of EnteroMedics’ family of devices targeted at correcting metabolic disorders.
In a press release announcing the planned conference call to provide updates on the commercialization of vBloc, EnteroMedics didn’t elaborate on the details of the call. However, it is not impossible to speculate what’s in the offing considering the recent developments in the company.
A few weeks ago, EnteroMedics Inc. (NASDAQ: ETRM) announced that it had closed the third phase of the convertible bonds issuance that it announced sometime late last year. The third tranche of the convertible notes generate proceeds of $6.25 million for the company. EnteroMedics has received $12.5 million from the earlier phases of the notes offering. Instead of stopping at the third tranche, the company made amendments that allowed it to go for a fourth tranche through which it seeks to raise $6.25 million.
What’s the money for?
At the announcement of the notes offering last year and even after receiving the proceeds from the offering, EnteroMedics has maintained that it intends to use the money to finance commercialization of not only Maestro Rechargeable System but also other programs. As such, the management could be preparing to outline how it will go about commercialization of vBloc, perhaps also detailing the expected outcome of such efforts.
What happened to EnteroMedics Inc. (NASDAQ: ETRM) in 1Q2016?
EnteroMedics Inc. (NASDAQ: ETRM) is still struggling with losses. The company posted a net loss of $7.4 million in the most recent quarter. Revenue for the quarter was $72,000.