DiaMedica Announces Pricing of $20 Million Public Offering of Common Shares
August 06 2020 - 9:05AM
Business Wire
DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage
biotechnology company, announced today the pricing of the
previously announced underwritten registered public offering of
4,000,000 of its common shares at a price to the public of $5.00
per share. DiaMedica has also granted the underwriters a 30-day
option to purchase up to an additional 600,000 common shares, at
the public offering price, less underwriting discounts and
commissions. All of the common shares are being offered by
DiaMedica. The offering is expected to close on or about August 10,
2020, subject to the satisfaction of customary closing
conditions.
DiaMedica expects the gross proceeds from the offering to be
approximately $20 million, before deducting the underwriting
discount and other estimated offering expenses payable by
DiaMedica. Net proceeds, after the underwriting discount, but
before estimated expenses of the offering payable by DiaMedica, are
expected to be approximately $18.8 million. As previously
announced, DiaMedica intends to use the net proceeds from the
offering to continue its clinical and product development
activities, including the addition of a new cohort III to its REDUX
study to be comprised of participants with Type II diabetes
mellitus with chronic kidney disease, hypertension and albuminuria,
and for other working capital and general corporate purposes.
Guggenheim Securities, LLC is acting as lead book-running
manager for the offering. Craig-Hallum Capital Group LLC is acting
as joint book-running manager and National Securities Corporation,
a wholly owned subsidiary of National Holdings Corporation (NASDAQ:
NHLD), is acting as lead manager.
The securities described above are being offered by DiaMedica
pursuant to a shelf registration statement on Form S-3 (File No.
333-235775) previously filed with and declared effective by the
U.S. Securities and Exchange Commission (SEC). A preliminary
prospectus supplement and accompanying prospectus relating to and
describing the terms of the offering were filed with the SEC on
August 5, 2020. The final prospectus supplement and the
accompanying prospectus relating to this offering will be filed
with the SEC and, when available, may be obtained by visiting the
SEC’s website at www.sec.gov or by contacting Guggenheim
Securities, LLC Attention: Equity Syndicate Department, 330 Madison
Avenue, New York, NY 10017, by telephone at (212) 518-9544, or by
email at GSEquityProspectusDelivery@guggenheimpartners.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
other jurisdiction.
About DiaMedica Therapeutics Inc.
DiaMedica Therapeutics Inc. is a clinical stage
biopharmaceutical company focused on developing novel treatments
for chronic kidney diseases and neurological disorders. DiaMedica’s
shares are listed on the Nasdaq Capital Market under the trading
symbol “DMAC.”
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and forward-looking information that are based on the beliefs
of management and reflect management’s current expectations. When
used in this press release, the words “intend,” “believe,”
“anticipate,” “expect,” “plan,” “continue,” “will,” “may” or
“should,” the negative of these words or variations thereon or
comparable terminology and the use of future dates are intended to
identify forward-looking statements and information. The
forward-looking statements and information in this press release
include statements regarding DiaMedica’s expectations on the
completion of the offering and the anticipated use of proceeds
therefrom. Such statements and information reflect management’s
current view and DiaMedica undertakes no obligation to update or
revise any of these statements or information. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Applicable risks and uncertainties include, among
others, market conditions and the satisfaction of customary closing
conditions related to the proposed offering, as well as risks and
uncertainties inherent in DiaMedica’s business, such as those
described in DiaMedica’s prior press releases and in the periodic
reports it files with the SEC, including without limitation, the
risks identified under the heading “Risk Factors” in DiaMedica’s
annual report on Form 10-K for the fiscal year ended December 31,
2019, and subsequent SEC filings by DiaMedica. The forward-looking
information contained in this press release represents the
expectations of DiaMedica as of the date of this press release and,
accordingly, is subject to change after such date. Readers should
not place undue importance on forward-looking information and
should not rely upon this information as of any other date. While
DiaMedica may elect to, it does not undertake to update this
information at any particular time except as required in accordance
with applicable laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20200806005569/en/
Scott Kellen Chief Financial Officer Phone: (763) 496-5118
skellen@diamedica.com
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