BOSTON and SYDNEY — 8 March 2018 — GI Dynamics®, Inc. (ASX:GID), a medical device company that is developing EndoBarrier® is pleased to announce that it has today successfully completed the second tranche of the Placement (as detailed further in the 23 January 2018 announcement).  The closing of the second tranche of the Placement occurs further to the company’s announcement on 23 January 2018 and based on shareholder approval that was obtained on Wednesday 28 February 2018 (AEDT) at the company’s special meeting. Under the second tranche of the Placement, GI Dynamics issued 30,313,556 CHESS Depositary Interests (CDIs) (representing 606,271 shares of common stock) raising AUD $1,060,974 (USD $830,000).

The CDIs issued under the Placement rank equally in all respects with all other CDIs on issue from the time of their allotment.

The funds raised under the Placement will be used by GI Dynamics to fund the continued development of the EndoBarrier and for general working capital purposes.

“We are delighted to show strong investor support for EndoBarrier and GI Dynamics with this successful placement.  In parallel to this financing we remain focused on securing approval for a new EndoBarrier pivotal clinical study with the FDA,” said Scott Schorer, president and chief executive officer of GI Dynamics.

“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.”

Restrictions on Resale of Securities in the United States

The securities to be offered have not been registered under the Securities Act of 1933, as amended (Act), or any state securities laws, and until so registered may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state securities laws. This announcement is not an offer to sell, nor a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction or an applicable exemption therefrom.


About GI Dynamics

GI Dynamics, Inc. (ASX:GID), is the developer of EndoBarrier, the first endoscopically-delivered device therapy designed for the treatment of type 2 diabetes and obesity. EndoBarrier is not approved for sale in the United States and is limited by federal law to investigational use only in the United States. Founded in 2003, GI Dynamics is headquartered in Boston, Massachusetts. For more information, please visit

Forward-Looking Statements

This announcement may contain forward-looking statements. Forward-looking statements are based on GI Dynamics management’s current estimates and expectations of future events as of the date of this announcement. Furthermore, the estimates are subject to several risks and uncertainties that could cause actual results to differ materially and adversely from those indicated in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks associated with our ability to continue to operate as a going concern, our ability to maintain compliance with our obligations under the Convertible Loan Note executed with Crystal Amber Fund Limited, obtaining and maintaining regulatory approvals required to market and sell our products; obtaining funding from third parties; the consequences of stopping the ENDO trial and the possibility that future clinical trials will not be successful or confirm earlier results; the timing and costs of clinical trials; the timing of regulatory submissions; the timing, receipt and maintenance of regulatory approvals; the timing and amount of other expenses; the timing and extent of third-party reimbursement; intellectual-property risk; risks related to excess inventory; and risks related to assumptions regarding the size of the available market, the benefits of our products, product pricing, timing of product launches, future financial results and other factors, including those described in our filings with the U.S. Securities and Exchange Commission. Given these uncertainties, one should not place undue reliance on these forward-looking statements. We do not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, unless we are required to do so by law.