DiaMedica Announces Closing of $23 Million Public Offering of Common Shares
August 10 2020 - 4:05PM
Business Wire
DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage
biotechnology company, announced today the closing of its
previously announced underwritten registered public offering of
4,600,000 of its common shares, including 600,000 shares sold upon
full exercise of the underwriters’ option to purchase additional
shares, at a price to the public of $5.00 per share, primarily with
institutional investors including several specialist biotech funds
and certain existing shareholders.
The gross proceeds from the offering were $23.0 million, before
deducting the underwriting discount and other estimated offering
expenses payable by DiaMedica. Net proceeds, after the underwriting
discount, but before estimated offering expenses payable by
DiaMedica, were approximately $21.6 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 Chronic Kidney Disease study to be comprised of
participants with chronic kidney disease and Type II diabetes
mellitus, and for other working capital and general corporate
purposes.
Guggenheim Securities, LLC acted as lead book-running manager
for the offering. Craig-Hallum Capital Group LLC acted as joint
book-running manager and National Securities Corporation, a wholly
owned subsidiary of National Holdings Corporation (NASDAQ: NHLD),
acted as lead manager. Lake Street Capital Markets acted as a
financial advisor to DiaMedica.
The securities described above were 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 final prospectus
supplement and accompanying prospectus relating to and describing
the terms of the offering were filed with the SEC on August 7, 2020
and 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
anticipated use of proceeds from the offering. 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/20200810005618/en/
Scott Kellen Chief Financial Officer Phone: (763) 496-5118
skellen@diamedica.com
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