GI Dynamics (ASX:GID) said today it raised $5 million in a convertible note offering, giving the company working capital necessary for the remainder of 2017.
The financing came from major shareholder Crystal Amber Fund Limited, the Boston-based company said.
“We are pleased to announce this bridge financing and appreciate the support and confidence from the Crystal Amber Fund. This financing helps position the company to work through legacy issues and position for a successful equity raise later in 2017. We believe that the terms of this financing are in the best interests of our shareholders and we look forward to sharing further progress,” prez & CEO Scott Schorer said in a press release.
GI Dynamics sad that in connection with the financing, itw as granted a waiver from the ASX, through which the company said will need to raise additional capital before the Q1 2018 to pursue its business plan, fund operations and repay the notes and discharge the security.
Earlier this month, GI Dynamics released data from an investigator-initiated study examining the safety and efficacy of its EndoBarrier after reimplantation for treatment for patients with type 2 diabetes and obesity, touting no complications and reduced insulin use.
