EnteroMedics shareholders reject reverse split, annual meeting canceled

EnteroMedics (NSDQ:ETRM) said yesterday it cancelled a special meeting of stockholders it had scheduled to vote on increasing stock numbers and initiating a reverse stock split after a lack of support from shareholders.

The company sought to increase the number of shares of common stock to 650 million in its 1st proposition, and was looking for approval to initiate a 1-for-10 or 1-for-20 reverse stock in the second, according to an SEC filing.

The meeting, which was scheduled for yesterday, was cancelled “due to a lack of a sufficient number of votes” in favor of the proposals, according to an SEC filing from the company.

EnteroMedics produces the Maestro device, an implantable neurostimulation device designed to intermittently block the vagus nerves using high-frequency, low-energy impulses. The therapy, which St. Paul, Minn.-based EnteroMedics calls “vBloc,” is approved in the U.S., Europe and Australia to aid in weight loss in obese adults with a body mass index of 40 to 45 or a related health condition and a BMI of 35 to 39.9.

In June, EnteroMedics said its Maestro device was used a pair of patients whose gastric sleeve procedures failed to bring the hoped-for weight loss and reduction in diabetes symptoms.

The therapy was used as an adjunctive rescue treatment in 2 obese patients, a 64-year-old male and a 55-year-old female, who both lost and maintained significant weight loss after sleeve gastrectomies. The patients did not move beyond Class II obesity or show enough abatement of diabetes symptoms and elected to have the Maestro device implanted rather than undergo duodenal switch or gastric bypass procedures, the company said.

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