On August 4, 2020, GI Dynamics, Inc. (OTCPK:GIDY.L) closed the transaction. The company has signed an convertible note purchase agreement with the investor for private placement of a unsecured convertible promissory note for aggregate principal amount of $500,000. The note accrues interest at a rate equal to 5% per annum compounded annually. The entire outstanding principal balance and all unpaid accrued interest thereon is due on demand; provided; however, that such demand cannot be made prior to the 6 months anniversary of the closing date. The note is convertible into the series A preferred shares at a variable conversion price 80% and the lowest per share purchase price of the capital stock issued in the qualified transaction. In addition, upon a change of control of the company, the investor may, at its option, demand that the company prepay all accrued and unpaid interest plus 110% of the remaining outstanding unconverted principal balance. The company may not prepay the note without the consent of the investor.