GI Dynamics (ASX:GID) said today its shareholders approved an offering worth a total of $1.6 million (AUD $2 million) through the sale of Australian CHESS depository interests in two tranches, with funds slated 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 in January, consisted 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 consists of 30.3 million CDIs, representing 606,271 shares of common stock expected to raise $830,000 (AUD $1.1 million).
Shareholders ratified previously issued CDIs and approved the issuance of CDIs under the second tranche upon receipt of all second tranche funds, according to the press release.
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.