GI Dynamics inks $2m note and warrant deal

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GI Dynamics (ASX:GID) said yesterday it inked an approximately $1.8 million note and warrant purchase deal with Crystal Amber Fund Limited, the company’s largest shareholder.

The note offered in the deal will accrue 10% interest annually over five years unless the company defaults, at which the rate will be lifted to 16%, the Lexington, Mass.-based company said.

The outstanding balance of the note and interest are convertible into CHESS Depositary Interests or common shares of stock at a price of 18¢ per CDI, GI Dynamics said.

The warrant will allow for the purchasing of approximately 97.2 million CDIs, GI Dynamics said, at an exercise price of 18¢ per share, and expires at five years, according to an SEC filing.

Last month, GI Dynamics released results from a meta-analysis of its EndoBarrier device in helping patients with type 2 diabetes and obesity, touting improvements in insulin resistance and positive changes in weight.

The post GI Dynamics inks $2m note and warrant deal appeared first on MassDevice.

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