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DiaMedica (DMA.V): New Financing Will Accelerate Development of Clinical Programs

10/30/2017
By Grant Zeng, CFA

TSX:DMA.V

On October 27, 2017, DiaMedica Therapeutics (TSX:DMA.V) announced that the company received approximately USD$605,263 in gross proceeds from the early exercise of 2,631,579 April 2017 warrants at USD$0.23 (CAD$0.31) per share.

Also, in April, DiaMedica completed a non-brokered private placement with a prominent U.S. investor. In that placement, DiaMedica issued 10,526,315 units to the investor at an issue price of USD$0.19 (CAD$0.25) per unit. Gross proceeds from the financing were approximately USD$2 million. The company indicated that the proceeds will be used to advance its research and development program, including DM199 for the treatment of neurological and kidney diseases, and for general corporate purposes.

We welcome the two financings. They not only boost the company’s balance sheet, but also validate the company’s technology and clinical programs. 

According to our understanding, the U.S. based life science investor has numerous academic, national, and international awards for leadership and contributions to the biopharmaceutical industry. Also, the investor has a deep understanding of recombinant proteins, and has rich experience and understanding of the biopharmaceutical industry in the U.S., Europe, and Asia. We think the investment in DiaMedica is an excellent strategic fit for the company and will help accelerate the company’s clinical programs, especially for DM199. 

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