Medical device company GI Dynamics (ASX:GID) reported on Friday the completion of the CHESS Depositary Interests (CDIs) under the second tranche of placement.

As part of second tranche of the placement, the company placed 197,222,250 CDIs (representing 3,944,445 shares of common stock) to certain sophisticated and professional investors in the US, Australia and Guernsey at an issue price of AUD0.02 per CDI raising a total of AUD3,944,445 (USD$2,840,000).

The company added the CDIs issued under the second tranche of the placement rank equally in all respects with all other CDIs on issue from the time of their allotment.

Proceeds from the second tranche of the placement will be used by the company to fund the continued development of EndoBarrier, the US pivotal trial of EndoBarrier (GID 18-1) as well as for general working capital purposes.

Additionally, the company' board of directors awarded its president & CEO, Scott Schorer, with incentive options to purchase 300,000 shares of its common stock (equivalent to 15,000,000 CDIs).

These options have an exercise price of USD0.72 per share of common stock, with a ten year term and vest over four years, subject to certain conditions including remaining an employee.The options were granted under the company's 2011 employee, director and consultant equity incentive plan for performance.

(USD1=AUD1.36861)