STOCKHOLM, Sweden, Dec. 18 /PRNewswire-FirstCall/ -- Diamyd Medical AB (SWEDEN OMX: DIAM B; US ADR: DMYDY) announced today that a Swedish institutional investor has acquired 70,000 new B-shares in Diamyd Medical. The shares were issued with the support of an authorization given at the recent Annual General Meeting to issue up to 600,000 shares. The price of purchase was US$ 21 per share which corresponded to the current market price. In order to enable immediate delivery, CEO Anders Essen-Moller has lent the corresponding number of shares until the new shares are registered.
After the capital addition, Diamyd Medical's liquid funds amount to US$ 15.3 million.
Through the new issue the share capital will increase by US$ 10,100 to US$ 1.41 million, divided over 9,747,478 shares, of which 561,671 A-shares and 9,185,807 B-shares. (US$1=SEK6.91)
"That a Swedish institutional asset manager invests in Diamyd Medical at the prevailing market price is very positive for the company," said Anders Essen-Moller, CEO. "We continually evaluate financing opportunities and with this transaction we were able to raise approximately US$1.5 million without offering any discount or incurring any external costs. Overall, the terms of the transaction should be very favorable for the company and shareholders."
About Diamyd Medical
Diamyd Medical is a Life Science company focused on developing treatments for diabetes and its complications. The Company's furthest developed project is the GAD-based drug Diamyd(R) for autoimmune diabetes. Diamyd(R) has demonstrated significant and positive results in Phase II clinical trials of both type 1 and autoimmune type 2 diabetes patients (LADA) in Sweden.
GAD65 is a major autoantigen in autoimmune diabetes and the active substance in Diamyd(R).
GAD65 is also an enzyme that converts the excitatory neurotransmitter glutamate to the inhibitory transmitter GABA. In this context GAD may have an important role not only in diabetes, but also in several CNS-related diseases. Diamyd Medical has an exclusive world-wide license from UCLA in Los Angeles regarding the therapeutic use of the GAD65 gene.
Diamyd Medical has sublicensed its UCLA GAD65 Composition of Matter license to Neurologix Inc., New Jersey, for treatment of Parkinson's disease with an AAV-vector.
Other projects comprise drug development within gene therapy using the exclusively licensed Nerve Targeted Drug Delivery System (NTDDS). The Company's lead gene therapy projects include using Enkephalin and GAD for chronic pain, e.g., diabetes pain or cancer pain. All projects in this field are in preclinical phases.
Diamyd Medical has offices in Stockholm (Sweden) and in Pittsburgh (U.S.A.) and its shares are quoted at the Nordic Exchange (NOMX: DIAM B). The Diamyd share is also traded in the US through a Level 1 ADR program administered by the Bank of New York . Further information is to be found on the Company's website; www.diamyd.com.
For further information, For media in the U.S.A. please contact: please contact: Anders Essen-Moller Gregory Tiberend President & CEO Executive Vice President Tel: +46 8 661 0026 Richard Lewis Communications, Inc. Cell: +46 7 0551 0679 Tel: +1 212 827 0020 E-mail: anders.essen-moller@diamyd.com E-mail: gtiberend@rlcinc.com
Diamyd Medical AB (publ). Linnegatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +46 8 661 00 26, fax: +46 8 661 63 68 or E-mail: info@diamyd.com. VATno: SE556530-142001.
This Information may include statements concerning historical, present and forward-looking items and are to the "best of knowledge" of the management of Diamyd Medical and the actual status may differ materially from these statements. The Company assumes no obligation to update these statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. The Company's Press Releases, Quarterly Reports and Annual Reports ("Information") are translations from Swedish originals. No guarantees are made that these translations are free from errors.
Diamyd Medical ABCONTACT: Anders Essen-Moller, President & CEO, +46-8-661-0026, Cell:+46-7-0551-0679, anders.essen-moller@diamyd.com; or For media in theU.S.A.: Gregory Tiberend, Executive Vice President, Richard LewisCommunications, Inc., +1-212-827-0020, gtiberend@rlcinc.com
Web site: http://www.diamyd.com/
