DiaMedica Therapeutics Announces $11.8 Million Private Placement
26 Juni 2024 - 2:15PM
Business Wire
DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage
biopharmaceutical company focused on developing novel treatments
for severe ischemic diseases, today announced that it has entered
into definitive agreements to sell its common shares in a private
placement with accredited investors. The transaction is expected to
result in gross proceeds of $11.8 million. A placement agent was
not used in connection with this private placement.
Pursuant to the terms of the securities purchase agreements, the
Company will issue a total of 4,720,000 common shares at a purchase
price of $2.50 per share. The private placement is expected to
close on or about June 28, 2024, subject to the satisfaction of
customary closing conditions.
The Company expects to use the net proceeds from the private
placement to continue its clinical and product development
activities for DM199 (rinvecalinase alfa), including its pivotal
Phase 2/3 ReMEDy2 trial for the treatment of acute ischemic stroke
and its clinical expansion into preeclampsia, and for other working
capital and general corporate purposes. The financing is expected
to extend DiaMedica’s cash runway into the third quarter of
2026.
Earlier today, DiaMedica also announced its plans to expand its
clinical trials into preeclampsia, a hypertensive disorder of
pregnancy with a significant unmet medical need and no U.S. Food
and Drug Administration (FDA) approved therapeutics.
The offer and sale of the common shares in the private placement
have not been registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), or any state or other applicable
jurisdiction’s securities laws, and such common shares may not be
offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act and applicable
state and other securities laws. 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.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the foregoing securities, nor shall
there be any sale of these 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.
Required Canadian Related Party Transaction
Disclosure
DiaMedica has received binding commitments for participation in
the private placement from certain non-management, related parties,
in the aggregate amount of $6.0 million or 2,400,000 common shares.
Accordingly, the private placement constitutes a “related party
transaction” as such term is defined in Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special
Transactions (“MI 61-101”) of the Canadian Securities
Administrators. The private placement will be exempt from the
valuation and the minority shareholder approval requirements of MI
61-101 under the exemptions contained in section 5.5(a) and
5.7(1)(a), respectively, as neither the fair market value of the
common shares nor the fair market value of the consideration paid
for the common shares insofar as it involves the related parties is
more than 25% of the Company’s market capitalization.
About DM199 (rinvecalinase alfa)
DM199 is a recombinant (synthetic) form of human tissue
kallikrein-1 (rhKLK1) in clinical development for acute ischemic
stroke (AIS) and preeclampsia. KLK1 is a serine protease enzyme
that plays an important role in the regulation of diverse
physiological processes via a molecular mechanism that increases
production of nitric oxide, prostacyclin and endothelium-derived
hyperpolarizing factor. In the case of AIS, DM199 is intended to
enhance blood flow and boost neuronal survival in the ischemic
penumbra by dilating arterioles surrounding the site of the
vascular occlusion and inhibition of apoptosis (neuronal cell
death) while also facilitating neuronal remodeling through the
promotion of angiogenesis. In preeclampsia, DM199 is intended to
lower blood pressure, enhance endothelial health and improve
perfusion to maternal organs and the placenta.
About DiaMedica Therapeutics Inc.
DiaMedica Therapeutics Inc. is a clinical stage
biopharmaceutical company committed to improving the lives of
people suffering from serious ischemic diseases with a focus on
acute ischemic stroke and preeclampsia. DiaMedica’s 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’s website at
www.diamedica.com.
Cautionary Note Regarding Forward-Looking Statements
This 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’s current expectations. When
used in this press release, the words “anticipates,” “believes,”
“continue,” “could,” “estimates,” “expects,” “intends,” “may,”
“plans,” “potential,” “should,” “can,” or “will,” 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’s planned clinical expansion into
preeclampsia, expectations regarding the private placement, the
timing for closing, the anticipated gross proceeds and use of net
proceeds from the private placement, including its belief that the
cash resources will extend DiaMedica’s cash runway into the third
quarter of 2026, and anticipated clinical benefits and success of
DM199. Such statements and information reflect management’s 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;
risks and uncertainties relating to the planned clinical expansion
into preeclampsia; uncertainties relating to the timing of site
activations and enrollment, regulatory applications and related
filing and approval timelines; the possibility of additional future
adverse events associated with or unfavorable results from the
ReMEDy2 trial; the possibility of unfavorable results from
DiaMedica’s ongoing or future clinical trials of DM199; the risk
that existing preclinical and clinical data may not be predictive
of the results of ongoing or later clinical trials; DiaMedica’s
plans to develop, obtain regulatory approval for and commercialize
its DM199 product candidate for the treatment of acute ischemic
stroke and preeclampsia and its expectations regarding the benefits
of DM199; DiaMedica’s ability to conduct successful clinical
testing of DM199 and within its anticipated parameters, enrollment
numbers, costs and timeframes; 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; the perceived benefits of DM199 over existing treatment
options; the potential direct or indirect impact of COVID-19,
hospital and medical facility staffing shortages, and worldwide
global supply chain shortages on DiaMedica’s business and clinical
trials, including its ability to meet its site activation and
enrollment goals; DiaMedica’s reliance on collaboration with third
parties to conduct clinical trials; DiaMedica’s ability to continue
to obtain funding for its operations, including funding necessary
to complete current and planned clinical trials and obtain
regulatory approvals for DM199 for acute ischemic stroke and
preeclampsia, and the risks identified under the heading “Risk
Factors” in DiaMedica’s annual report on Form 10-K for the fiscal
year ended December 31, 2023 and subsequent reports filed with the
U.S. Securities and Exchange Commission including its most recent
report on Form 10-Q for the quarter ended March 31, 2024. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240626102206/en/
Scott Kellen Chief Financial Officer Phone: (763) 496-5118
skellen@diamedica.com
Paul Papi Corporate Communications Phone: (508) 444-6790
ppapi@diamedica.com
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