DiaMedica Therapeutics Secures $30.1 Million in Private Placement to Boost Research

What's Happening?

DiaMedica Therapeutics Inc., a clinical-stage biopharmaceutical company, has successfully closed a $30.1 million private placement of common shares to accredited investors. The company, which focuses on developing treatments for conditions such as preeclampsia and acute ischemic stroke, sold approximately 8.6 million common shares at $3.50 per share. After deducting expenses, DiaMedica received net proceeds of approximately $29.9 million. The funds will enhance the company's cash reserves, which stood at $37.3 million as of March 31, 2025, bringing the total to $67.2 million on a pro forma basis. The securities sold are not registered under the U.S. Securities Act of 1933, but DiaMedica plans to file a registration statement with the SEC for the resale of these shares.

Why It's Important?

This financial boost is significant for DiaMedica as it supports the company's ongoing research and development efforts, particularly in the field of ischemic diseases. The infusion of capital will enable DiaMedica to advance its lead candidate, DM199, a synthetic form of the KLK1 protein, which is under study for treating acute ischemic stroke. The successful private placement also reflects investor confidence in DiaMedica's potential to bring innovative treatments to market. This development could have broader implications for the biopharmaceutical industry, highlighting the continued interest and investment in novel therapeutic solutions.

What's Next?

DiaMedica plans to file a registration statement with the SEC to facilitate the resale of the common shares issued in the private placement. The company will likely focus on accelerating its clinical trials and research activities, leveraging the new funds to advance its pipeline. Investors and stakeholders will be watching closely for updates on the progress of DM199 and other potential treatments in development. The company's ability to meet regulatory requirements and achieve clinical milestones will be critical in maintaining investor confidence and driving future growth.