Crystal Amber Fund Limited Investment in GI Dynamics Inc

 
TIDMCRS 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
                           (EU) No. 596/2014 ("MAR") 
 
10 February 2017 
 
                          Crystal Amber Fund Limited 
                     ("Crystal Amber Fund" or the "Fund") 
 
                         Investment in GI Dynamics Inc 
 
The Fund is pleased to announce that it has acquired a further 16.08 per cent. 
of the issued Chess Depositary Interests ("CDI") in GI Dynamics Inc ("GI 
Dynamics"), taking the Fund's CDI holding in the company to 38.73 per cent. 
 
GI Dynamics is the developer of EndoBarrier, the first minimally invasive 
device therapy approved for the treatment of type 2 diabetes and obesity. 
EndoBarrier is a temporary bypass sleeve that is endoscopically delivered to 
the duodenal intestine, offering similar effects to the surgical gastric 
bypass. It is CE mark approved and commercially available in Europe and a 
number of countries outside of the United States. 
 
Founded in 2003, GI Dynamics is headquartered in Boston, Massachusetts. It 
listed in September 2011 on the Australian Stock Exchange, with a share price 
of AUS1.10 and market capitalisation of AUS300 million. Following what the Fund 
considers to be several operational failures by previous management, including 
a terminated FDA trial, GI Dynamics' share price currently stands at 2.8c, 
valuing the company at AUS15.5 million, approximately GBP9.5 million. 
Shareholders since listing include Johnson & Johnson and Medtronic Inc. 
 
Since launch, the EndoBarrier therapy has been used in over 3,500 patients 
worldwide. Multiple independent studies support its safety and efficacy in 
reducing weight, HbA1c (blood glucose) levels and the need for insulin and 
other prescribed medications.  EndoBarrier stands as a minimally invasive 
alternative to bariatric surgery and pharmacotherapy, which have well 
documented side effects and safety issues. The wide prevalence of type 2 
diabetes and obesity present a potentially vast market opportunity expected to 
reach 355 million patients in 2030. 
 
The Fund supports the current management's strategy to commercialise the device 
in Europe, initiate a new FDA trial and continue to gather clinical data. This 
would build on 2016's successes, including the 300 patient UK trials led by the 
Association of British Clinical Diabetologists ("ABCD") and the data announced 
from the German registry, which included 243 patients. The company has achieved 
partial reimbursement in Germany (NUB status 1) and Israel and has received 
preliminary reimbursement codes in Holland and Switzerland. 
 
The Fund believes that GI Dynamics has a world class technology, addressing an 
unmet clinical need, with its current share price a function of shareholder 
disillusionment resulting from past management disappointments. 
 
The Fund, in conjunction with its Investment Adviser, now looks forward to 
working with the GI Dynamics board to fully capitalise on what the Fund 
believes is GI Dynamics' highly scalable potential. 
 
For further enquiries please contact: 
 
Crystal Amber Fund Limited 
William Collins (Chairman) 
Tel: [phone] 
www.crystalamber.com 
 
Allenby Capital Limited - Nominated Adviser 
David Worlidge/James Thomas 
Tel: [phone] 
 
Winterflood Investment Trusts - Broker 
Joe Winkley/Neil Langford 
Tel: [phone] 
 
Crystal Amber Advisers (UK) LLP - Investment Adviser 
Richard Bernstein 
Tel: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

February 10, 2017 06:10 ET (11:10 GMT)