DiaMedica Inc. Accelerates Warrant Expiry Date
Published: Nov 22, 2010
WINNIPEG, MANITOBA--(Marketwire - November 22, 2010) - DiaMedica (TSX VENTURE: DMA) today announces that in accordance with the terms of the warrant indenture for those warrants issued on June 30, 2010 the Company has provided the required written notice to holders of such warrants that the expiry date has been accelerated to the close of business December 22, 2010.
Under the terms of the indenture and the broker warrant certificates, if the 10-day volume weighted average trading price of the common shares of DiaMedica on the TSX Venture Exchange exceeds $0.75, then at any date subsequent to this date, the expiry date of the warrant shall be the day that is 30 days following the later of (i) the date that written notice of the accelerated expiry is sent to warrantholders; and (ii) the date on which the announcement of the warrant expiry acceleration is made by news release. As of the close of business on November 19, 2010, the 10-day volume-weighted average trading price of the common shares exceeded $0.75. Warrants may be exercised through payment of the exercise amount of $0.50 per full warrant up to the close of business on December 22, 2010. If all of the 6,215,000 outstanding warrants subject to this acceleration are exercised, DiaMedica will receive additional proceeds of $2.8 million. Any warrants not exercised prior to the accelerated expiry date and time will expire without any further action being taken.
DiaMedica is a biopharmaceutical company focused on developing novel treatments for type I diabetes, type 2 diabetes and other disorders. DiaMedica has completed two successful proof-of-concept II studies with DM-71 and DM-99, which demonstrate human efficacy in lowering blood glucose levels in patients with type 2 diabetes.
DiaMedica's lead product DM-199 is a novel next generation recombinant form of DM-99, which has shown the potential to increase insulin sensitivity, reduce the autoimmune attack and trigger proliferation of pancreatic beta cells, neural stem cells and bone marrow cells. DiaMedica is listed on the TSX Venture Exchange under the trading symbol "DMA". For further information please visit www.diamedica.com.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, the "forward-looking statements"). These forward-looking statements relate to, among other things, DiaMedica's objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Specifically, this press release contains forward-looking statements regarding matters such as, but not limited to, the anticipated use of proceeds from the Offering, management's assessment of DiaMedica's future plans, information with respect to the advancement of DiaMedica's research and development programs, and DiaMedica's other estimates and expectations. These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: uncertainties and risks related to our research and development programs, the availability of additional financing, risks and uncertainties relating to the anticipated use of proceeds, changes in debt and equity markets, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, the cost and supply of raw materials, management of growth, effects of insurers' willingness to pay for products, risks related to regulatory matters and risks related to intellectual property matters.
Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this news release, as well as under the heading "Risk Factors" contained in DiaMedica's 2009 annual information form. DiaMedica cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on DiaMedica's forward-looking statements to make decisions with respect to DiaMedica, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Such forward-looking statements are based on a number of estimates and assumptions, which may prove to be incorrect, including, but not limited to, assumptions regarding the availability of additional financing for research and development companies, and general business and economic conditions. These risks and uncertainties should be considered carefully and investors and others should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, DiaMedica cannot provide assurance that actual results will be consistent with these forward-looking statements. DiaMedica undertakes no obligation to update or revise any forward-looking statement. Additional risk factors, factors which could cause actual results to differ materially from expectations, and assumptions relating specifically to our acquisition of Sanomune may be found in our press releases dated February 18, 2010 and April 20, 2010.
President & CEO