MINNEAPOLIS, MINNESOTA--(Marketwire - March 22, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
DiaMedica Inc. (TSX VENTURE:DMA), 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 5,111,175 units (the "Units") at a price of $0.90 per Unit for aggregate gross proceeds of approximately $4.6 million. Each Unit comprises one common share in the capital stock of the Company (a "Common Share") and one half of one common share purchase warrant (a "Warrant"), with each whole Warrant entitling the holder thereof to acquire an additional Common Share until March 22, 2016 at a price of $1.10 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 $1.60 per share for a period of 10 consecutive trading days. In connection with the completion of the Offering, the agent Sora Group Wealth Advisors Inc. exercised its option in full to increase the size of the Offering by 15% or 666,675 Units from 4,444,500 Units to 5,111,175 Units.
"This Offering will be used to fund DiaMedica's ongoing research and development programs, including an upcoming Phase I/II clinical trial for DM-199 and additional preclinical indications," said Rick Pauls, President and CEO of DiaMedica.
In addition to the foregoing, DiaMedica has made application today to the TSX Venture Exchange to amend the exercise price of the warrants that were issued in May of 2012 in connection with an earlier exercise incentive program from an exercise price of $2.50 to an exercise price of $1.10. Any such amendment to the exercise price is subject to TSXV approval.
DiaMedica Inc. (TSX VENTURE:DMA) is a biotechnology company developing first-in-class treatments for the treatment of diabetes. DiaMedica's lead compound, DM-199, is a recombinant human protein for the treatment of both Type 1 and Type 2 diabetes and their complications. The Company is also developing the first therapeutic GPCR agonist monoclonal antibody, DM-204, for the treatment of Type 2 diabetes and cardiovascular disease. DiaMedica's shares trade on the Toronto Stock Exchange Venture (TSX VENTURE:DMA). For more information please visit www.diamedica.com.
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.