Diamyd Medical Raises SEK 58.4 Million in Funds Through Redemption of Warrants
STOCKHOLM, Dec. 6, 2018 /PRNewswire/ --
During 1 to 30 November 2018, holders of warrants of series TO 1 B and TO 2 A of Diamyd Medical AB have been able to subscribe for shares through warrants. A total of 426 037 A shares and 12 409 855 B shares have been subscribed for, which means a subscription rate of 95.6 percent. Diamyd Medical thus raises approximately SEK 58.4 million before issue costs.
"We are delighted at the outcome of the redemption of warrants," says Ulf Hannelius, CEO of Diamyd Medical. "The proceeds, together with existing cash, will finance both the DIAGNODE-2 trial until results in 2020 as well as our other ongoing activities. With our strengthened cash position, full focus is on preparing a marketing authorization application for the diabetes vaccine Diamyd® ahead of results in 2020.
Diamyd Medical issued 852 074 warrants of series TO 2 A and 25 989 268 warrants of series TO 1 B in connection with a rights issue in 2017. Two (2) warrants of each series entitled the holder to subscribe for of one (1) new share of that respective series at a price of 4.55 SEK per share during the period 1-30 November 2018. A total of 426 037 A shares and 12 409 855 B shares were subscribed for. The Company thus raised proceeds of approximately SEK 58.4 million before issue costs. Consequently, all 852 044 warrants of series TO 2 A and 24 819 710 warrants of series TO 1 B of a total of 25 989 268 were utilized, resulting in a subscription rate of 95.6 percent. Following the registration of the new shares at the Swedish Companies Registration Office, the share capital will amount to SEK 7 015 397.92. The total number of shares increases from 56 333 904 to 69 169 796, divided into 2 556 223 A-shares and 66 613 573 B-shares.
About Diamyd Medical
Diamyd Medical is dedicated to finding a cure for diabetes and other serious inflammatory diseases through pharmaceutical development and investments in stem cell and medical technology.
Diamyd Medical develops the diabetes vaccine Diamyd®, for antigen-specific immunotherapy based on the exclusively licensed GAD-molecule. Diamyd® has demonstrated good safety in trials with more than 1,000 patients as well as effect in some pre-specified subgroups. Besides the Company's own European Phase-II trial DIAGNODE-2, where the diabetes vaccine is administered directly into the lymph node, there are four investigator initiated clinical trials ongoing with Diamyd®. Diamyd Medical also develops Remygen®, an oral GABA-based investigational drug. An investigator-initiated trial in patients with type 1 diabetes since at least five years has started at Uppsala University Hospital. An investigator-initiated placebo-controlled trial with GABA and Diamyd® in patients recently diagnosed with type 1 diabetes is ongoing at the University of Alabama at Birmingham. Exclusive licenses for GABA and positive allosteric modulators of GABA receptors for the treatment of diabetes and inflammatory diseases constitutes alongside with the diabetes vaccine Diamyd® and Remygen® key assets. Diamyd Medical is also one of the major shareholders in the stem cell company NextCell Pharma AB and has holdings in the medtech company Companion Medical, Inc., San Diego, USA and in the gene therapy company Periphagen, Inc., Pittsburgh, USA.
Diamyd Medical's B-share is traded on Nasdaq First North under the ticker DMYD B. FNCA Sweden AB is the Company's Certified Adviser.
For further information, please contact:
Ulf Hannelius, President and CEO
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SOURCE Diamyd Medical AB
Company Codes: ISIN:SE0005162880, Stockholm:DMYD-B.ST