BOSTON & SYDNEY--(BUSINESS WIRE)--GI Dynamics® Inc. (ASX:GID), a medical device company that has commercialized EndoBarrier® in Europe, the Middle East and South America for patients with type 2 diabetes and obesity today announced a US $5,000,000 convertible note financing.

GI Dynamics conducted the financing solely with its major shareholder, Crystal Amber Fund Limited. The financing is intended to provide GI Dynamics with adequate working capital through the remainder of 2017.

The key terms of the financing are outlined in Attachment 1.

In connection with the financing, GI Dynamics has been granted a waiver from ASX Listing Rule 10.1 to facilitate the security arrangements. The terms of the waiver are outlined in Attachment 2.

In accordance with the terms of the waiver, GI Dynamics confirms it will need to raise additional capital before the end of the first quarter of 2018 to continue to pursue its current business objectives as planned, to continue to fund its operations, and to repay the Note and discharge the security (to the extent the Note is not, or is not able to be, converted). Currently, the Company is evaluating a number of fundraising alternatives that could involve any combination of collaborative arrangements, strategic alliances and / or additional equity or debt financing. Fundraising may also come from other sources as the Company works to resolve nonconformance issues in connection with the suspension of its CE Mark.

“We are pleased to announce this bridge financing and appreciate the support and confidence from the Crystal Amber Fund,” said Scott Schorer, president and chief executive officer of GI Dynamics. “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.”

About GI Dynamics

GI Dynamics, Inc. (ASX:GID) is the developer of EndoBarrier, the first endoscopically-delivered device approved 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 www.gidynamics.com.