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GI DYNAMICS, INC (ASX:GID) is to extend the maturity date of its 2017 Senior Secured Convertible Promissory Note from 31 December 2018 to 31 March 2019 and is pleased to announce that it has reached an agreement with Crystal Amber Fund Limited. Essentially the companyâs largest shareholder is Crystal Amber.
The company issued on 15 June 2017, the Note to Crystal Amber in the aggregate principal amount of US $5m. The Note accrues interest compounded annually, at a rate of 5% per year. To repay the total amount outstanding under the Note the company does not currently have enough cash reserves. On 16 June 2017, including a summary of its terms, the details of the Note were first time announced by the company.
By 7 January 2019 in exchange for the extension of the maturity date of the Note, the company has agreed to pay to Crystal Amber all outstanding interest that had accrued under the Note until 31 December 2018, the amount of US $393,835.62.
To carry on the evaluation of its optimal capital markets strategy the company plans to use the extended term of the Note, to support a listing on another stock exchange and associated fundraising which includes potentially hiring an investment bank.
To either restructuring the terms of the Note it will continue discussions with Crystal Amber as desirable or as needed in connection with the companyâs future capital markets strategy. If the Company is unable to raise enough funds by 31 March 2019, agreeing terms for a further extension of the Noteâs maturity date to enable it to repay the Note in full on its maturity date.
To conduct its planned clinical trials in the United States (GID 18-1) and to support the companyâs and India continued operation, the company continue to evaluate and pursue sources of raising additional funds.â They continue to believe EndoBarrier as a potential treatment for patients diagnosed with type 2 diabetes and obesity, and to support the clinical trials approved in the United States and India are working hard to secure additional financing.
GI DYNAMICS, INC (ASX:GID) has surged up by 18.75% to trade at $0.019 as at January 02, 2019 which is very near to its 52-week low.
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