DiaMedica Therapeutics Announces Closing of Private Placement
21 March 2018 - 8:40AM
DiaMedica Therapeutics Inc. (the “
Company”)
(TSX-V:DMA) (OTCQB:DMCAF) is pleased to announce the successful
completion of the first closing of a private placement for
aggregate gross proceeds of USD$3.8 million (the
“
Offering”). The Offering consisted of both
brokered and non-brokered components and resulted in the issuance
of 15,955,225 units of the Company (the “
Units”)
at a purchase price of USD$0.245 (CAD$0.31) per Unit (the
“
Offering Price”). The Offering was priced with
Dominick Capital Corp based upon the trading price range of the
Company’s common stock on March 1, 2018.
Each Unit consists of one common share of
DiaMedica Therapeutics and one-half of one common share purchase
warrant (each whole Common Share purchase warrant, a
“Warrant”). Each Warrant entitles the holder to
acquire, subject to adjustment, one additional common share at an
exercise price of USD$0.35 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$0.60 for a period of 21 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 30 days following
the later of: (i) the date on which such Notice is sent to the
holder; or (ii) the date on which the News Release is
issued.
Dominick Capital Corporation (the
“Agent”) was engaged as lead agent in connection
with the brokered portion of the Offering. In consideration
for its services, the Company paid the Agent (together with its
sub-agents) an aggregate cash fee of USD$168,000 and issued an
aggregate of 707,120 compensation options (the
“Compensation Options”). Each Compensation
Option entitles the holder to purchase one Common Share at the
Offering Price for a period of 24 months from the closing of the
Offering, subject to acceleration on the same terms as the
Warrants.
In connection with the non-brokered portion of
the Offering, the Company paid aggregate finder’s fees of
approximately USD$60,000 and issued an aggregate of 254,720
Compensation Options to the following finders: Echelon Wealth
Partners Inc., Canaccord Genuity Corp., Richardson GMP Ltd., Leede
Jones Gable and Mackie Research Capital Corporation.
The Company plans to use the net proceeds from
the Offering to fund its recently initiated REMEDY trial studying
DM199 for the treatment of acute ischemic stroke and for general
corporate purposes.
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 on July
20, 2018. The Offering is subject to final acceptance by the
TSX Venture Exchange. The Company anticipates closing a
second and final tranche of the Offering on or about March 27,
2018, which second tranche has already been fully subscribed.
This news release shall not constitute an offer
to sell or the solicitation of an offer to buy securities in the
United States, or for the account or benefit of U.S. persons (as
such term is defined in Regulation S under the United
States Securities Act of 1933, as amended (the “1933
Act”). The securities issued by DiaMedica have not been
and will not be registered under the 1933 Act or the securities
laws of any state of the United States, and may not be offered or
sold in the United States absent such registration, or
qualification for an applicable exemption therefrom, under the 1993
Act and the securities laws of all applicable states.
About DiaMedica Therapeutics
Inc.
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”. For more information,
please visit www.diamedica.com. Follow us on
social media – Twitter,
LinkedIn.
For further information, please
contact:Paul Papi Vice President of Business Development
DiaMedica Therapeutics Inc. Two Carlson Parkway, Suite 260
Minneapolis, MN Phone: (617) 899-5941 info@diamedica.com
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FORWARD-LOOKING STATEMENTS
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 tenor, are intended to identify any forward-looking
statements. You should not place undue reliance on these
forward-looking statements. Forward looking statements in this news
release include, but are not limited to, the Company's objectives,
goals, future plans and statements regarding the use of proceeds
from the Offering and the plan to close a second tranche of the
Offering. Factors that could cause actual results to differ
materially from such forward-looking information described in
detail in the DiaMedica's filings with the Canadian securities
regulators, all of which are available on SEDAR
(www.sedar.com). 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. DiaMedica
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,
unless required by law. 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 press release.
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