Initial Statement of Beneficial Ownership


FORM 3
        
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

WHITEBOX ADVISORS LLC

2. Date of Event Requiring Statement (MM/DD/YYYY)
3/7/2011 

3. Issuer Name and Ticker or Trading Symbol

EnteroMedics Inc [ETRM]

(Last)        (First)        (Middle)

3033 EXCELSIOR BOULEVARD, SUITE 300, 

4. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                            ___ X ___ 10% Owner
_____ Officer (give title below)          ___ X ___ Other (specify below)
/ See Remarks below

(Street)

MINNEAPOLIS, MN 55416       

(City)              (State)              (Zip)
5. If Amendment, Date Original Filed (MM/DD/YYYY)

 

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

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


Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock   (1) 1932600   I   (2) See Footnote   (3)

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(MM/DD/YYYY)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Warrants   (1) 6/13/2011   6/13/2016   Common Stock Warrants   1700000   $2.19   I   (2) See Footnote   (3)

Explanation of Responses:
( 1)  Shares acquired are held directly by Whitebox Multi-Strategy Partners, L.P. ("WMSP"), Whitebox Small Cap Long Short Equity Partners, L.P. ("WSCLSEP"), Pandora Select Partners, L.P. ("PSP"), and HFR RVA Combined Master Trust ("HFR").
( 2)  The general partner of , WMSP is Whitebox Multi-Strategy Advisors, LLC ("WMSA"), WSCLSEP is Whitebox Small Cap Long Short Equity Advisors, LLC ("WSCLSEA"), and PSP is Pandora Select Advisors, LLC ("PSA"). The managing member and controlling owner of WMSA, WSCLSEA, and PSA is Whitebox Advisors, LLC ("WA"). WA is the investment manager authorized and appointed as HFR's agent and attorney-in-fact with the power to direct the affairs of HFR including the power to vote and dispose of the shares of Common Stock held by HFR and decision-making power with respect to the disposition of the proceeds from the sale of such Common Stock.
( 3)  Shares attributable to interests held by WA as Managing Member of WMSA, WSCLSEA, and PSA, which act as General Partners of WMSP, WSCLSEP, and PSP which directly hold the shares and as Investment Adviser to HFR.

Remarks:
Based on the relationships described in notes (1) and (2), the entities referenced therein may be deemed to constitute a group for purposes of Rule 13d-5(b)(1) under the Securities and Exchange Act of 1934. The filing of this statement shall not be construed as an admission that WA, WMSA, WMSP, WSCLSEA, WSCLSEP, PSA, PSP, and HFR are a group, or have agreed to act as a group. WA, WMSA, WMSP, WSCLSEA, WSCLSEP, PSA, PSP, and HFR each disclaim beneficial ownership of the shares of common stock reported herein except to the extent of their pecuniary interest in such shares.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
WHITEBOX ADVISORS LLC
3033 EXCELSIOR BOULEVARD, SUITE 300
MINNEAPOLIS, MN 55416

X
See Remarks below
Whitebox Multi-Strategy Partners LP
3033 EXCELSIOR BOULEVARD, SUITE 300
MINNEAPOLIS, MN 55416

X
See Remarks Below
Whitebox Small Cap Long Short Equity Advisors, LLC
3033 EXCELSIOR BOULEVARD
SUITE 300
MINNEAPOLIS, MN 55416

X
See Remarks Below
Pandora Select Partners, L.P.
3033 EXCELSIOR BOULEVARD, SUITE 300
MINNEAPOLIS, MN 55416

X
See Remarks Below
HFR MASTER TRUSTS
65 FRONT STREET
HAMILTON HM 11, D0 

X
See Remarks Below

Signatures
/s/ Jonathan D. Wood, Chief Operating Officer, on behalf of Whitebox Advisors, LLC 3/7/2011
** 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 5(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.
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