\nDiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage biopharmaceutical company focused on developing novel treatments for neurological disorders and kidney diseases, today announced the closing of its previously announced $37.5 million private placement to accredited investors. The Company sold approximately 11.0 million common shares a purchase price of $3.40 per share, equal to the average per share closing price of the Company\u2019s common shares for the five trading days ended June 20, 2023, except in the case of DiaMedica management who agreed to a higher purchase price of $3.91 per share, equal to the closing sale price of the Company\u2019s common shares on June 20, 2023. After deducting estimated offering expenses, the Company received net proceeds of approximately $36.3 million.<\/p>\n
\nThe Company reported cash, cash equivalents and short-term investments of $28.7 million as of March 31, 2023. On a pro forma basis, including the estimated $36.3 million in net proceeds from the private placement, the Company\u2019s cash, cash equivalents and short-term investments would have been $65.0 million as of such date.<\/p>\n
\nCraig-Hallum Capital Group LLC acted as the placement agent for the private placement investment by certain of the investors. Lake Street Capital Markets, LLC acted as financial advisor to the Company.<\/p>\n
\nThe securities sold in the private placement have not been registered under the U.S. Securities Act of 1933, as amended, or any state or other applicable jurisdiction\u2019s securities laws, and may not be offered or sold in the United States absent such registration or an applicable exemption therefrom. The Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission registering the resale of the common shares issued in the private placement.<\/p>\n
\nThis release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Company\u2019s securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.<\/p>\n
About DM199<\/b><\/p>\n
\nDM199 is a recombinant (synthetic) form of human tissue kallikrein-1 (KLK1). KLK1 is a serine protease (protein) that plays an important role in the regulation of diverse physiological processes including blood flow, inflammation, fibrosis, oxidative stress and neurogenesis via a molecular mechanism that increases production of nitric oxide and prostaglandin. KLK1 deficiency may play a role in multiple vascular and fibrotic diseases such as stroke, chronic kidney disease, retinopathy, vascular dementia, and resistant hypertension where current treatment options are limited or ineffective. DiaMedica is the first company to have developed and clinically studied a recombinant form of the KLK1 protein. The KLK1 protein, produced from the pancreas of pigs and human urine, has been used to treat patients in Japan, China and South Korea for decades. DM199 is currently being studied in patients with acute ischemic stroke (AIS). In September 2021, the FDA granted Fast Track Designation to DM199 for the treatment of AIS.<\/p>\n
About DiaMedica Therapeutics Inc.<\/b><\/p>\n
\nDiaMedica Therapeutics Inc. is a clinical stage biopharmaceutical company committed to improving the lives of people suffering from serious diseases with a focus on acute ischemic stroke. DiaMedica\u2019s lead candidate DM199 is the first pharmaceutically active recombinant (synthetic) form of the KLK1 protein, an established therapeutic modality in Asia for the treatment of acute ischemic stroke and other vascular diseases. For more information visit the Company\u2019s website at www.diamedica.com<\/a>.<\/p>\n Cautionary Note Regarding Forward-Looking Statements<\/b><\/p>\n \nThis press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and forward-looking information that are based on the beliefs of management and reflect management\u2019s current expectations. When used in this press release, the words \u201cexpects,\u201d \u201cestimate,\u201d \u201cbelieve,\u201d \u201canticipate,\u201d \u201cintend,\u201d \u201cexpect,\u201d \u201cplan,\u201d \u201ccontinue,\u201d \u201clook forward,\u201d \u201cwill,\u201d \u201cmay\u201d or \u201cshould,\u201d the negative of these words or such variations thereon or comparable terminology and the use of future dates are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include statements regarding the Company\u2019s expectations regarding net proceeds from the private placement. Such statements and information reflect management\u2019s current view and DiaMedica undertakes no obligation to update or revise any of these statements or information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Applicable risks and uncertainties include, among others, risks and uncertainties surrounding the private placement; uncertainties relating to regulatory applications and related filing and approval timelines\u037e the possibility of additional future adverse events associated with or unfavorable results from the ReMEDy2 trial\u037e the possibility of unfavorable results from DiaMedica\u2019s ongoing or future clinical trials of DM199\u037e the risk that existing preclinical and clinical data may not be predictive of the results of ongoing or later clinical trials\u037e DiaMedica\u2019s plans to develop, obtain regulatory approval for and commercialize its DM199 product candidate for the treatment of acute ischemic stroke and chronic kidney disease and its expectations regarding the benefits of DM199\u037e DiaMedica\u2019s ability to conduct successful clinical testing of DM199 and within its anticipated parameters, enrollment numbers, costs and timeframes\u037e the adaptive design of the ReMEDy2 trial and the possibility that the targeted enrollment and other aspects of the trial could change depending upon certain factors, including additional input from the FDA and the blinded interim analysis\u037e the perceived benefits of DM199 over existing treatment options\u037e the potential direct or indirect impact of COVID-19, hospital and medical facility staffing shortages, and worldwide global supply chain shortages on DiaMedica\u2019s business and clinical trials, including its ability to meet its site activation and enrollment goals\u037e DiaMedica\u2019s reliance on collaboration with third parties to conduct clinical trials\u037e DiaMedica\u2019s need for additional financing and ability to continue to obtain funding for its operations, including funding necessary to complete planned clinical trials and obtain regulatory approvals for DM199 for acute ischemic stroke and chronic kidney disease, and the risks identified under the heading \u201cRisk Factors\u201d in DiaMedica\u2019s annual report on Form 10-K for the fiscal year ended December 31, 2022 and subsequent U.S. Securities and Exchange Commission filings, including DiaMedica\u2019s quarterly report on Form 10-Q for the quarterly period ended March 31, 2023. The forward-looking information contained in this press release represents the expectations of DiaMedica as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While DiaMedica may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230626849362\/en\/<\/a><\/span><\/p>\n \nScott Kellen \nPaul Papi KEYWORDS:<\/b> Minnesota United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Finance FDA Neurology Diabetes Clinical Trials Professional Services Cardiology Health Pharmaceutical<\/p>\n<\/p>\n
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Chief Financial Officer
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Phone: (763) 496-5118
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skellen@diamedica.com<\/a><\/p>\n
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Corporate Communications
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Phone: 617-899-5941
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ppapi@diamedica.com<\/a><\/p>\n
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