DiaMedica Therapeutics Closes $11.8M Private Placement

MINNEAPOLIS-- DiaMedica Therapeutics, Inc. (Nasdaq: DMAC), a biopharmaceutical company in the clinical stage, dedicated to creating advanced treatments for severe ischemic diseases, has announced the completion of its $11.8 million private placement to accredited investors. The company issued around 4.7 million common shares, each priced at $2.50, a 10% premium over the company's closing share price on June 25, 2024. After deducting estimated expenses, the net proceeds amounted to roughly $11.7 million.

As of March 31, 2024, DiaMedica reported cash, cash equivalents, and short-term investments totaling $46.5 million. Factoring in the net proceeds from the private placement, the company’s pro forma cash, cash equivalents, and short-term investments would be approximately $58.2 million as of the same date.

The securities sold in this private placement are not registered under the U.S. Securities Act of 1933 or any state’s securities laws and cannot be offered or sold in the U.S. without registration or an applicable exemption. The company plans to file a registration statement with the U.S. Securities and Exchange Commission to register the resale of the common shares issued during this private placement.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities and there will be no sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful without proper registration or qualification under the securities laws of that jurisdiction.

Upon the closing of the private placement, Thomas von Koch, via TomEnterprise Private AB, will acquire indirect ownership of 1,200,000 common shares of DiaMedica. Prior to this, von Koch already owned and controlled 4,326,435 common shares, representing about 11.4% of the company’s issued and outstanding common shares on a non-diluted basis. Post-acquisition, von Koch will own and control 5,526,435 common shares, approximately 12.9% of the company’s issued and outstanding common shares on a non-diluted basis. The acquisition cost for von Koch is $3,000,000 (approximately C$4,098,000), priced at $2.50 per common share (approximately C$3.41), intended for investment purposes. Von Koch may, depending on circumstances, adjust his holdings by purchasing additional shares or selling his current ones, while adhering to applicable securities laws.

Trill AB also acquired 1,200,000 common shares in this private placement. Before this acquisition, Trill owned and controlled 4,021,608 common shares, representing about 10.6% of the issued and outstanding common shares on a non-diluted basis. After the acquisition, Trill will own and control 5,221,608 common shares, about 12.2% of the company’s issued and outstanding common shares on a non-diluted basis. Similar to von Koch, Trill’s acquisition cost is $3,000,000 (approximately C$4,098,000), priced at $2.50 per common share (approximately C$3.41), also intended for investment purposes. Trill may also decide to buy more shares or sell current holdings based on existing circumstances and applicable securities laws.

In compliance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, both von Koch and Trill will file early warning reports with Canadian securities regulators following the closing of the private placement. Copies of these reports will be available under the company’s profile.

DiaMedica Therapeutics Inc. is a clinical-stage biopharmaceutical company aiming to improve the lives of individuals suffering from severe ischemic diseases, focusing primarily on acute ischemic stroke and preeclampsia. Their lead candidate, DM199, is the first pharmaceutically active recombinant form of the KLK1 protein, utilized in Asia for treating acute ischemic stroke and other vascular diseases.

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