GI Dynamics®, Inc. (ASX:GID), a medical device company announced that it has received binding commitments for a private placement of 58,780,619 CHESS Depositary Interests (CDIs) of the Company (representing 1,175,612 shares of common stock) at an issue price of AUD $0.035 per CDI to sophisticated and professional investors in Australia, the United States, and the United Kingdom to raise approximately AUD $2.05 million (representing approximately USD $1.6 million).
The issue of CDIs under the Placement will occur in two tranches. The first tranche closed on the morning of 23 January 2018, resulting in the raising of AUD $996,347 (USD $779,442) by the issue of 28,467,063 CDIs (representing 569,341 shares of common stock). The second tranche, expected to result in the raising of AUD $1,060,974 (USD $830,000) by the issue of 30,313,556 CDIs (representing 606,271 shares of common stock) will be subject to shareholder approval at an Extraordinary General Meeting (EGM). The EGM date will be announced concurrently with filing of the proxy. Please refer to the Company’s EGM proxy statement that will be available on the Company’s website.
The funds raised under the Placement will be used by GI Dynamics to fund the continued development of EndoBarrier and for general working capital purposes.
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