GI Dynamics (ASX:GID) said it’s raised roughly $52.2 million (A$57.5 million) in a private placement and is offering another $2.3 million (A$2.5 million) in a stock purchase plan for existing shareholders.
The Lexington, Mass.-based medical device company said it plans to use the cash to fund a U.S. clinical trial of its EndoBarrier weight loss and diabetes treatment, a plastic sleeve used to line the gut to inhibit the uptake of nutrients from food.
"We are very pleased with the successful completion of this financing," CEO Stuart Randle said in prepared remarks. "With the FDA’s approval last year to allow us to move forward with a pivotal trial in the United States rather than a pilot trial, our clinical investment needs increased. This financing allows us to fully and rapidly resource our pivotal trial (The ENDO Trial) in the United States while continuing to expand our commercial footprint and sales ramp in Europe, Australia, South America and the Middle East and build the case for reimbursement in key markets."
The private placement involved 108.5 million shares at 53¢ Australian apiece (about 48¢ U.S. each), issued to investors Down Under and in the U.S. and "certain other jurisdictions," according to a press release.
The share purchase plan, for shareholders as of July 2, allows the purchase of up to A$15,000 ($13,600 U.S.) at the same share price as the private placement, according to the release.