DiaMedica Raises $37.5M Via Equity Offering, Aiding Development Activities For DM199

DiaMedica Therapeutics Inc. DMAC has entered into an agreement with accredited investors that have agreed to provide up to $37.5 million in gross proceeds through a private placement.

The company will issue 11.01 million common shares at a purchase price of $3.40 per share. 

The value is equal to the average per share closing price of the company's common shares for the five trading days ended June 20, 2023.

DiaMedica management agreed to a higher purchase price of $3.91 per share.

The private placement is expected to close on or about June 23, 2023, subject to the satisfaction of customary closing conditions.

The company expects to use the net proceeds from the private placement to continue its clinical and product development activities for DM199, including its pivotal Phase 2/3, ReMEDy2 clinical trial, and other working capital and general corporate purposes. 

The proceeds will also fund the ReMEDy2 trial through the completion of the interim analysis.

Earlier today, DiaMedica also announced that the FDA removed the clinical hold on the Phase 2/3 ReMEDy2 clinical trial studying the use of product candidate DM199 to treat acute ischemic stroke patients.

Price Action: DMAC shares are trading lower by 5.63% to $3.69 on the last check Wednesday.