EnteroMedics Inc. priced an underwritten public offering of units at $1,000 apiece to raise $20 million in gross proceeds.

Each unit is comprised of a series B preferred stock and a seven-year warrant to purchase 435 common shares of the company at $2.30 apiece.

Each preferred stock can also be converted into 435 common shares of the company at $2.30 apiece.

The preferred stocks include a beneficial ownership blocker but have no dividend rights.

EnteroMedics plans to use the proceeds to advance its product pipeline.

The offering is expected to close by Aug. 16, with Ladenburg Thalmann & Co. Inc. acting as the sole book-running manager.