DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a pioneering biopharmaceutical firm renowned for its innovative approach to severe ischemic diseases, has announced a significant milestone today. The company successfully finalized agreements for a private placement offering, securing $11.8 million in gross proceeds from accredited investors.
This strategic funding round underscores DiaMedica’s commitment to advancing clinical and product development initiatives, primarily focused on its flagship candidate, DM199 (rinvecalinase alfa). DM199, a synthetic form of human tissue kallikrein-1, holds promise in treating acute ischemic stroke and preeclampsia, addressing critical unmet medical needs.
The private placement involves the issuance of 4,720,000 common shares at $2.50 per share, scheduled to close on or about June 28, 2024, subject to customary closing conditions. Notably, this financing is expected to extend DiaMedica’s financial runway into the third quarter of 2026, reinforcing its position as a leader in ischemic disease therapeutics.
In conjunction with this funding, DiaMedica announced plans to expand its clinical trials into preeclampsia, a hypertensive disorder of pregnancy with no FDA-approved therapies currently available. This expansion underscores DiaMedica’s commitment to advancing medical breakthroughs that could significantly impact maternal health globally.
“We are pleased with the enthusiastic support from our investors, which will allow us to accelerate the development of DM199 and expand our clinical footprint into preeclampsia,” said [Scott Kellen, Chief Financial Officer / Paul Papi, Corporate Communications], emphasizing DiaMedica’s strategic growth trajectory.
The private placement transaction is not registered under the U.S. Securities Act of 1933 or any applicable state laws, with plans for a subsequent registration statement to facilitate resale of the shares issued.
Editorial:
DiaMedica Therapeutics’ successful $11.8 million private placement and expansion into preeclampsia clinical trials represent a significant stride forward in biopharmaceutical innovation. By securing this funding, DiaMedica not only strengthens its financial position but also underscores its commitment to advancing treatments for severe ischemic conditions. The potential of DM199 to address critical medical needs like acute ischemic stroke and preeclampsia highlights DiaMedica’s proactive approach to improving patient outcomes. As the company extends its cash runway and navigates regulatory pathways, its dedication to transparency and compliance sets a commendable standard in the industry. DiaMedica’s progress serves as a promising example of how biopharmaceutical companies can drive meaningful advancements in healthcare, offering hope to patients and investors alike for a healthier future.
