GI Dynamics intends to use the proceeds raised from the placement to fund its US pivotal trial, to continue to expand commercialization efforts for EndoBarrier therapy, and for general working capital purposes.

GI Dynamics CEO Stuart A Randle noted that the company is very pleased with the successful completion of this financing.

"This financing provides additional resources to support our ongoing pivotal trial in the U.S. This capital also allows us to continue to execute on our global dual-pronged commercial strategy focused on driving sales in the near term in self-pay markets, while building for the long-term success and future growth of EndoBarrier® Therapy in reimbursed markets," Randle added.

The CDIs that have been subscribed for under the placement comprise 65,951,267 CDIs which are available for issue under GI Dynamics’ 25% placement capacity under ASX Listing Rules 7.1 and 7.1A, which will be issued on or around 9 May 2014.

The Placement CDIs will rank equally in all respects with CDIs on issue at the date of allotment. Bell Potter Securities served as the sole lead manager to the placement.