MINNEAPOLIS, Dec. 18, 2017 (GLOBE NEWSWIRE) -- DiaMedica Therapeutics Inc. (the “Company”) (TSX-V:DMA) (OTCQB:DMCAF) announced today the closing of its previously announced non-brokered private placement raising total gross proceeds of approximately CAD$1.2 million (approximately USD$950,000) (the "private placement"). The proceeds will be used by the Company to support development with DM199 for the treatment of stroke and for other working capital purposes.
In connection with the private placement, the company issued 3,624,408 Units. Each Unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder thereof to acquire one additional common share at an exercise price of USD$0.35 (approximately CAD$0.45) per share until 5:00 p.m. (Central Time) on the date that is: (i) twenty-four months after the date of issuance, or (ii) if on any date (the “Accelerated Exercised Date”) (a) the volume-weighted average closing trading price of the common shares on any recognized Canadian stock exchange equals or exceeds USD$0.60 for a period of 21 consecutive trading days, then, at the Company’s sole discretion and upon the Company sending the holder written notice of such Accelerated Exercise Date (the “Notice”) and issuing a news release announcing such Accelerated Exercise Date (the “News Release”), the day that is 21 days following the later of: (i) the date on which such Notice is sent to the holder; and (ii) the date on which the News Release is issued. All of the Units issued in connection with the private placement will be subject to a restricted period that expires four months after the issuance date. Cash finder's fees of $1,809 were paid on a portion of the financing.
DM199 is a recombinant (synthetic) human tissue kallikrein (“KLK1”) protein to treat neurological and chronic kidney diseases. KLK1 is a naturally occurring enzyme with a pivotal role in the kallikrein-kinin system (KKS) that regulates blood pressure and local blood flow which has important role for the treatment of diseases including acute ischemic stroke and chronic kidney disease. DiaMedica has completed five clinical trials with DM199, including single ascending and multiple ascending doses, studies in diabetic patients, and a Phase 1b pharmacokinetic study to confirm dosing strategies. In addition to the current REMEDY TRIAL the drug has a good safety and tolerability profile, DM199 showed the anticipated activity, lowering blood pressure and kidney function, over the course of treatment in multiple clinical studies.
About DiaMedica Therapeutics Inc.
DiaMedica Therapeutics is a clinical stage biopharmaceutical company focused on developing novel treatments for neurological and kidney diseases. DiaMedica’s shares are listed on the TSX Venture Exchange under the trading symbol “DMA” and on the OTCQB under the trading symbol “DMCAF”. For more information, please visit www.diamedica.com. Follow us on social media – Twitter, LinkedIn.
For further information, please contact:
Vice President of Business Development
DiaMedica Therapeutics Inc.
Two Carlson Parkway, Suite 260
Phone: (617) 899-5941
The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address DiaMedica's expectations, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words “may”, “will”, “anticipate”, “believe”, “estimate”, “expect”, “intend” and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. Forward looking statements in this news release include, but are not limited to, the Company's objectives, goals, future plans and statements regarding the use of proceeds from the private placement. Factors that could cause actual results to differ materially from such forward-looking information described in detail in the DiaMedica's filings with the Canadian securities regulators, all of which are available on SEDAR (www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those anticipated in these forward-looking statements. DiaMedica undertakes no obligation, and does not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events, unless required by law. Although management believes that expectations are based on reasonable assumptions, no assurance can be given that these expectations will materialize.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this press release.