As reported in MASS Device, Investors have agreed to buy $5 million worth of GI Dynamics’ (ASX:GID) common stock, representing 6.9 million shares.
The Lexington, Massachusettes based company said it will use the money to fund the continued development of its EndoBarrier device and for general working capital. EndoBarrier is a plastic gut sleeve designed to treat type 2 diabetes and obesity by preventing the absorption of nutrients from food as it exits the stomach and enters the intestinal tract. In August, the FDA granted EndoBarrier an investigational device exemption (IDE) to begin enrollment in a pivotal trial, pending Institutional Review Board approval. The investment represents another positive note for the company, which has faced a number of hurdles with its device over the past few years, including shutting down an initial FDA-approved study, being pulled off the shelves in Australia and losing its CE Mark approval in the European Union in November 2017. GI Dynamics, Inc., a medical device company, engages in the design and application of devices and disease management solutions for treatment of metabolic diseases. The company offers EndoBarrier, a medical device for the treatment of patients with type 2 diabetes and obesity. It serves health care providers, such as hospitals and physicians; and third-party distributors. The company sells its products primarily in Europe, the Middle East, the Asia Pacific, and South America. GI Dynamics, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts.