GI Dynamics (ASX:GID) said yesterday it raised approximately $1.6 million (AUD $2 million) in a private placement of Australian CHESS depository interests looking to support continued development of its EndoBarrier and for general working capital.
The Boston-based company said the placement comes through the sale of approximately 58.8 million CDIs, representing 1.2 million shares of common stock at 28¢ (AUD 35¢) per share in two tranches.
The first tranche, which closed today, consists of 28.5 million CDIs, representing 569,341 shares of common stock and raising $779,442 (AUD $996,347), GI Dynamics said.
The second tranche is expected to consist of 30.3 million CDIs, representing 606,271 shares of common stock expected to raise $830,000 (AUD $1.1 million).
“We are focused on securing approval for a study from the FDA for a new pivotal clinical trial of EndoBarrier. The leadership team, employees, and directors of GI Dynamics remain resolved in our commitment to continue to develop EndoBarrier for the millions of patients who have no viable treatment option for type 2 diabetes and obesity,” prez & CEO Scott Schorer said in a press release.
In its offering release, GI Dynamics said it “continues to operate with substantial doubt about its ability to continue as a going concern.”
Last November, GI Dynamics said its notified body in Europe withdrew its certification for CE Mark approval for its EndoBarrier device, meaning the company can no longer sell the obesity and diabetes treatment in the European Union.