FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
OMB APPROVAL
OMB Number: 3235-0287
Estimated average burden
hours per response... 0.5
                      
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

Nihalani Rajesh 		2. Issuer Name and Ticker or Trading Symbol

EnteroMedics Inc [ ETRM ] 		5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                      __ X __ 10% Owner
__ X __ Officer (give title below)      _____ Other (specify below)
Chief Technology Officer
(Last)          (First)          (Middle)

2800 PATTON ROAD 		3. Date of Earliest Transaction (MM/DD/YYYY)

5/22/2017
(Street)

ST. PAUL, MN 55113
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 		2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8) 		4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, $0.01 par value per share   5/22/2017     A    978845   A   (1) 978845   D    

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3) 		2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8) 		5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4) 		8. Price of Derivative Security
(Instr. 5) 		9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-voting Conditional Convertible Preferred Stock     (2) 5/22/2017     A      709099.8   (3)        (2)   (2) Common Stock   3545498.99     (2) 709099.8   (3) D    
Non-voting Conditional Convertible Preferred Stock     (2) 5/22/2017     A      29108.12         (2)   (2) Common Stock   145540.6     (2) 29108.12   I   See Footnotes   (4) (5)

Explanation of Responses:
(1)  Received in exchange for 14,000,000 shares of common stock of BarioSurg, Inc. (BarioSurg) pursuant to the Agreement and Plan of Merger, by and among EnteroMedics Inc. (EnteroMedics), BarioSurg, Acorn Subsidiary Inc., a wholly-owned subsidiary of EnteroMedics, Acorn Subsidiary Holdings LLC, a wholly-owned subsidiary of EnteroMedics, and the stockholder representative named therein, (the Merger Agreement), which became effective on May 22, 2017 (the Effective Date). The Merger Agreement placed a value on EnteroMedics common stock of $4.78, which was equal to the five trading day average per share closing price of EnteroMedics as reported on the NASDAQ Capital Market immediately prior to the Effective Date.
(2)  Each share of non-voting conditional convertible preferred stock will automatically convert into five shares of EnteroMedics' common stock, subject to and contingent upon the post-closing approval of EnteroMedics' stockholders in accordance with the NASDAQ Stock Market Rules. The non-voting conditional convertible preferred stock contains the rights, preferences, powers and priviliges specified in the certificate of designation.
(3)  Of the 709,099.80 shares of non-voting conditional convertible preferred stock issued to the reporting person in the merger, 70,909.98 are currently being held in escrow and subject to forfeiture during the nine-month period following the Effective Date to satisfy claims arising as a result of BarioSurg's breach of any of its representations and warranties or covenants in the Merger Agreement.
(4)  Represents shares of non-voting conditional convertible preferred stock held in escrow on behalf of BarioSurg's stockholders and subject to forfeiture during the nine-month period following the Effective Date to satisfy claims arising as a result of BarioSurg's breach of any of its representations and warranties or covenants in the Merger Agreement. The reporting person may be deemed to be the beneficial owner of such shares as a result of his role as stockholder representative pursuant to the Merger Agreement.
(5)  In connection with and as a condition to the execution of the Merger Agreement, EnteroMedics and the reporting person entered into a voting agreement and irrevocable proxy pursuant to which the reporting person agreed to vote these shares of non-voting conditional convertible preferred stock (assuming conversion into voting common stock upon the terms set forth in the Merger Agreement and certificate of designation) in accordance with the recommendation of the Board of Directors. Following the release of the shares from the escrow, these shares will be released to the BarioSurg stockholders in accordance with the Merger Agreement.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
Nihalani Rajesh
2800 PATTON ROAD
ST. PAUL, MN 55113
X Chief Technology Officer

Signatures
/s/ Scott P. Youngstrom, attorney-in-fact 5/24/2017
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
Enteromedics (NASDAQ:ETRM)
Historical Stock Chart
From Aug 2024 to Sep 2024 Click Here for more Enteromedics Charts.
Enteromedics (NASDAQ:ETRM)
Historical Stock Chart
From Sep 2023 to Sep 2024 Click Here for more Enteromedics Charts.