EnteroMedics Inc (NASDAQ:ETRM) is scheduled to have a special meeting of shareholders, on October 19, 2016, with the management urging the attendees to vote in favor of all the proposed amendments, during the meeting. The management has stated that each of the proposed amendments is necessary to be approved, for continued listing of its stock on NASDAQ and fund future developments. This also includes the company’s recently announced distribution agreement, to supply vBloc therapy to US veterans, through VA clinics, at almost no costs to them, given their health benefits.
Shareholders of record, as of September 14, 2016 would be allowed to attend and vote on matters of the meeting. However, ETRM has been encouraging shareholders to vote by electronic means or phone. Shareholders only need their control number when voting by these means.
Matters to vote in the meeting include an amendment in article IV of the Certificate of Incorporation, to allow ETRM to increase the number of authorized shares to 650 million. The management has also proposed a second amendment to the certificate, to allow the management to exercise a reverse stock split, of 1-for-10 and 1-for-20, with the board reserving the right to choose a range, at the time of exercising. Moreover, the company also expects to reinstate its stock incentive plan, from 2003.
Prior to this announcement, EnteroMedics issued a letter to shareholders, updating them on the recent happenings of the company. In the letter, the CEO of ETRM, Dan Gladney, claimed that obesity has become one of the greatest threats to humanity. He stated that the company was taking significant steps to expand the availability of vBloc Therapy, to a wide range of patients. Moreover, he also pointed out that the effectiveness of the therapy was backed by extensive research. This included the 24-month long ReCharge study, conducted by ETRM itself. The study is available to be viewed in the August issue of “Obesity Surgery”.
EnteroMedics Inc (NASDAQ:ETRM) closed at a share price of $0.103, at the end of the October 14 trading session, 6.63% lower than the session before. The stock had a trade volume of 5.13 million.