The option came as a proposal from the Lexington, Mass.-based company’s board of directors, set to be voted on at an upcoming stockholder meeting.
GI Dynamics said that the consideration comes due to the “financial position of the company and the stage of the company’s development,” according to the filing.
“The board believes that a decision on whether to remain listed on the ASX needs to be made as a matter of priority. The board intends to form a final view on this issue within the next two months and if it decides that a delisting from the Official List should occur it wishes to have the flexibility to act quickly to implement the delisting procedure,” GI Dynamics wrote in the SEC filing.
The company said that it has already communicated with the ASX about the delisting, and that the exchange would “be likely to agree to remove the company from the Official List.”
If the proposal is approved, GI Dynamics said that it expects the delisting will occur on or before August 13, according to an SEC filing.
“While the board has not yet formed a definitive view, it is the board’s view that the company may seek delisting if it is unable to secure binding commitments for significant funding within the next two months that are conditional on the company remaining listed on the Official List,” GI Dynamics wrote in the filing.
GI Dynamics warned that if a delisting occurs, shareholders wishing to sell their CDIs on the ASX would need to do so before trading is suspended.
In March, GI Dynamics said that results from a retrospective study of its EndoBarrier device for patients with type 2 diabetes and obesity shows a significant reduction in HbA1c, weight, liver fat and cardiovascular disease risks as well as a reduction in the need for insulin in some patients.