MINNEAPOLIS, MINNESOTA--(Marketwired - April 18, 2017) - DiaMedica Therapeutics Inc. (the "Company") (TSX VENTURE:DMA)(OTCQB:DMCAF), a biopharmaceutical company focused on the development of DM199 (recombinant human KLK1), is pleased to announce it has completed a non-brokered private placement with a prominent U.S. investor (the "Offering") with the issuance of 10,526,315 units (the "Units") at an issue price of USD$0.19 (CAD$0.25) per Unit for gross proceeds of approximately USD$2,000,000. The proceeds will be used by the Company to advance its research and development program, including DM199 for the treatment of neurological and kidney diseases, and for general corporate purposes.
"The U.S. based life science investor has numerous academic, national, and international awards for leadership and contributions to the biopharmaceutical industry. The investor's deep understanding of recombinant proteins, as well as her experience and understanding of the biopharmaceutical industry in the U.S., Europe, and Asia, makes the investment in DiaMedica an excellent strategic combination." - Rick Pauls, President and CEO of DiaMedica Therapeutics
Each Unit consisted of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder thereof to acquire one additional common share at an exercise price of USD$0.23 (CAD$0.31) per share until 5:00 p.m. (Central Time) on the date that is: (i) twenty-four months after the date of issuance, or (ii) if on any date (the "Accelerated Exercised Date") (a) the volume-weighted average closing trading price of the common shares on any recognized Canadian stock exchange equals or exceeds USD$0.30 for a period of 10 consecutive trading days, then, at the Company's sole discretion and upon the Company sending the holder written notice of such Accelerated Exercise Date (the "Notice") and issuing a news release announcing such Accelerated Exercise Date (the "News Release"), the day that is 21 days following the later of: (i) the date on which such Notice is sent to the holder; and (ii) the date on which the News Release is issued.
The common shares and warrants issued by the Company under the Offering are subject to restrictions on resale in accordance with applicable securities laws and the policies of the TSX Venture Exchange. These restrictions will expire four months and a day following the issuance of the Units. The Offering is subject to final acceptance by the TSX Venture Exchange.
About DiaMedica Therapeutics
DiaMedica Therapeutics is a clinical stage biopharmaceutical company focused on developing novel treatments for neurological and kidney diseases. DiaMedica's shares are listed on the TSX Venture Exchange under the trading symbol "DMA" and on the OTCQB under the trading symbol "DMCAF".
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