Exhibit 99.1

 

Boston, United States

Sydney, Australia

20 November 2019 AEDT

Appointment of an Observer to the Board of Directors Representing Crystal Amber

BOSTON and SYDNEY — 20 November 2019 — GI Dynamics^® Inc. (ASX:GID) (Company or GI Dynamics), a medical device company that is developing EndoBarrier® for patients with type 2 diabetes and obesity, is pleased to announce that on November 20, 2019, GI Dynamics, Inc. (the “Company”) entered into a letter agreement (the “Board Observer Agreement”) with Crystal Amber Fund Limited (“Crystal Amber”), the Company’s largest stockholder and a related party for the purposes of the Australian Securities Exchange (“ASX”) Listing Rules.

In accordance with the Board Observer Agreement, the Company has granted Crystal Amber the right to appoint one representative to attend meetings of the Company’s Board of Directors (the “Board”) in a non-voting observer capacity only (i.e. not a director appointment), for so long as Crystal Amber beneficially owns an aggregate of at least 20% of the Company’s common stock on a fully-diluted as-converted basis. Further in accordance with the Board Observer Agreement, Crystal Amber has notified the Company that it will appoint Juan Morera as the initial representative of Crystal Amber to be an observer of the Board.

About GI Dynamics

GI Dynamics^®, Inc. (ASX:GID) is the developer of EndoBarrier^®, the first endoscopically-delivered device therapy for the treatment of type 2 diabetes and obesity. EndoBarrier is not approved for sale and is limited by federal law to investigational use only. EndoBarrier is subject to an Investigational Device Exemption by the FDA in the United States and is entering concurrent pivotal trials in the United States and India. Founded in 2003, GI Dynamics is headquartered in Boston, Massachusetts. For more information please visit www.gidynamics.com.

Investor Relations

United States:
Janell Shields

+1 (781) 357-3280

investor@gidynamics.com

 

 

Boston, United States

Sydney, Australia

20 November 2019 AEDT

Forward-Looking Statements

This announcement may contain forward-looking statements. These statements are based on GI Dynamics management’s current estimates and expectations of future events as of the date of this announcement. Furthermore, the estimates are subject to several risks and uncertainties that could cause actual results to differ materially and adversely from those indicated in or implied by such forward-looking statements.

These risks and uncertainties include, but are not limited to, risks associated with our ability to continue to operate as a going concern; our ability to obtain stockholder approval of the conversion feature of the August 2019 Note and issuance of the August 2019 Warrant, our ability to raise sufficient additional funds to continue operations and to conduct the planned pivotal trial of EndoBarrier in the United States (STEP-1); our ability to execute STEP-1 under FDA’s Investigational Device Exemption; our ability to enlist clinical trial sites and enroll patients in accordance with STEP-1; the risk that the FDA stops STEP-1 early as a result of the occurrence of certain safety events or does not approve an expansion of STEP-1; our ability to enroll patients in accordance with I-STEP; our ability to secure a CE Mark; our ability to maintain compliance with our obligations under our existing convertible note and warrant agreements executed with Crystal Amber, including our obligations to make payment on the Note that is due on 31 March 2020 and our ability to restructure the terms of the Note with Crystal Amber that is due on 31 March 2020 if we are unable to raise sufficient funds to enable us to fully repay such Note when due; obtaining and maintaining regulatory approvals required to market and sell our products; the possibility that future clinical trials will not be successful or confirm earlier results; the timing and costs of clinical trials; the timing of regulatory submissions; the timing, receipt and maintenance of regulatory approvals; the timing and amount of other expenses; the timing and extent of third-party reimbursement; intellectual-property risk; risks related to excess inventory; risks related to assumptions regarding the size of the available market; the benefits of our products; product pricing; timing of product launches; future financial results; and other factors, including those described in our filings with the U.S. Securities and Exchange Commission.

Given these uncertainties, one should not place undue reliance on these forward-looking statements. We do not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, unless we are required to do so by law.

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Investor Relations

United States:
Janell Shields

+1 (781) 357-3280

investor@gidynamics.com