WINNIPEG, MANITOBA--(Marketwire - July 22, 2011) - DiaMedica Inc., (TSX VENTURE:DMA), a biotechnology company focused on diabetes, is pleased to announce the completion today of its previously announced short form prospectus offering (the "Offering").
Pursuant to the Offering, DiaMedica issued a total of 3,105,000 units (the "Units") at a price of $1.25 per Unit for aggregate gross proceeds of approximately $3.88 million. Each Unit is comprised of one common share in the capital stock of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder thereof to acquire an additional Common Share until July 22, 2013 at a price of $1.50 per share. The expiry date of the Warrants is subject to acceleration if the volume-weighted average trading price of the Common Shares on the TSX Venture Exchange exceeds $2.00 per share for a period of 10 consecutive trading days.
"This Offering will be used to fund DiaMedica's ongoing research and development programs, including a planned clinical trial for DM-199," said Rick Pauls, President and CEO of DiaMedica.
Sora Group Wealth Advisors Inc. ("Sora") acted as agent for the Offering. In connection with the completion of the Offering, Sora exercised its agent's option to increase the size of the Offering by 15% or 405,000 Units from 2,700,000 Units to 3,105,000 Units.
DiaMedica is a biopharmaceutical company that has developed novel therapeutic compounds aimed to improve the lives of patients with diabetes and other major, medically unmet diseases. DiaMedica's lead compound, DM-199, represents a novel approach to treating Type 1 and Type 2 diabetes by demonstrating significant results against three major aspects of these diseases: 1) halting the autoimmune attack on beta cells; 2) proliferating insulin producing beta cells and 3) improving glucose control.
DiaMedica is also developing DM-204, a monoclonal antibody that inhibits the enzyme glycogen synthase kinase. In preclinical studies, DM-204 significantly improved glucose control and decreased blood pressure.
The Company is listed on the TSX Venture Exchange under the trading symbol 'DMA'.
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. These statements reflect a current view of future events and are subject to certain risks and uncertainties as contained in the Company's filings with Canadian securities regulatory authorities. 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. The Company 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. 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 News Release.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and CEO