Devices & Diagnostics

Massachusetts-based device company raises $34.76 million to fund US pivotal clinical trial, execute commercial strategy abroad

  GI Dynamics, Inc., a Lexington, Mass.-based company known for its EndoBarrier  Therapy, which it claims can reduce blood-sugar levels and offer weight-loss results in Type 2 Diabetes patients, has raised $34,755,000 in equity and CDIs, according to a regulatory filing it made with the SEC on July 22. The company still seeks $17,745,000, which […]

 

GI Dynamics, Inc., a Lexington, Mass.-based company known for its EndoBarrier  Therapy, which it claims can reduce blood-sugar levels and offer weight-loss results in Type 2 Diabetes patients, has raised $34,755,000 in equity and CDIs, according to a regulatory filing it made with the SEC on July 22.

The company still seeks $17,745,000, which it expects in August 2013, following shareholder approval, according to the company’s press contact, Dan Budwick.

presented by

The company recently announced this oversubscribed private placement with additional investments from a number of existing investors and welcoming several new institutional shareholders to the register.

Lazard Capital Markets, LLC, the lead placement agent in the United States, and  SunTrust Robinson Humphrey, Inc., the co-placement agent in the United States, both collected sales commissions on this deal, for a combined total of $522,873.

“The company intends to use the proceeds raised from the placement and SPP to fund its U.S. pivotal clinical trial and to continue executing on its global commercial strategy for EndoBarrier Therapy,” Budwick said in an email.

According to a press release,  “The company is also pleased to announce the terms of an offer to eligible shareholders of the company with a registered address in Australia or New Zealand (Eligible Shareholders) under a Share Purchase Plan (SPP) to raise up to $2.5 million (or such greater amount as the directors determine).”  That offer closed on July 26. Shares will be allotted and shareholders should expect to receive holding statements on Aug. 5, according to the same release.

The SPP is in addition to the $52.5 million included on the SEC filing.

The device is currently commercialized in Australia, Chile, Israel and a few European countries. In the U.S., there’s a pivotal clinical trial.

The officers and directors listed on the filing include President and CEO Stuart Randle, former president and CEO at ACT Medical, Inc., which was acquired by MedSource Technologies;  Director Graham Bradley, Chairman of Stockland Corp.Ltd., Po Valley Energy Ltd. and HSBC Australia Ltd.;  CFO Robert Crane, former partner at Montgomery Ventures; Director Timothy Barberich, the founder and former CEO of SepraCor;  Director Jack Meyer, the  former President and CEO of Urologix, Inc. and current Director at Minnetronix, Inc.;  Director Michael Carusi, a general partner at Advanced Technology Ventures;  and Director Anne Keating, the former GM of United Airlines in Australia, who is a board member at  Ardent Leisure Management Ltd., ClearviewWealth Ltd., Goodman Group Ltd., Garvan Institute of Medical Research and REVA Medical, Inc.