aibioDiaMedica Therapeutics agrees to $30.1 million private placement with existing stockholders
Tickers DMAC
DiaMedica will sell 8,606,426 common shares at $3.50 each, for expected gross proceeds of $30.1 million before fees. The 8-K names no placement agent, and the company used $22,076 thousand in operations in 2024 while its equity fell to $40,718 thousand.
Key facts
- Company
- DiaMedica Therapeutics Inc. (NASDAQ: DMAC)
- News type
- Financings
- Primary source
- DiaMedica Therapeutics Inc. Form 8-K filed July 21, 2025 (SEC EDGAR)
DiaMedica Therapeutics Inc. (Nasdaq: DMAC) agreed on July 21, 2025 to sell 8,606,426 common shares at $3.50 each in a private placement to existing stockholders. The company expects gross proceeds of $30.1 million before fees and other offering expenses. It disclosed the deal in a Form 8-K under Items 1.01, 3.02 and 8.01. The closing is expected on or about July 23, 2025, subject to customary closing conditions.
The filing names no placement agent, underwriter or financial advisor for the sale, and it names no counsel to the company or to the buyers.
Terms of the sale
DiaMedica, a corporation existing under the laws of British Columbia, Canada, signed the agreement with existing stockholders who are accredited investors. The company expects to use the net proceeds for its preeclampsia clinical program for DM199 and for working capital and general corporate purposes. The shares are sold without registration under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D.
Registration deadlines and penalties
Under a registration rights agreement, DiaMedica must file a resale registration statement within 10 business days after closing. The statement must be declared effective within 30 calendar days after closing, or 75 calendar days if the SEC conducts a full review.
If DiaMedica misses those dates, and no permitted exception applies, it must pay liquidated damages to the purchasers. The filing gives no rate for those damages. The company also agrees to indemnify the selling holders and to pay all expenses of compliance.
Losses, cash burn and a shrinking equity base
The annual report, filed March 17, 2025, shows a net loss of $24,444 thousand for 2024, up from $19,381 thousand in 2023. Net cash used in operating activities was $22,076 thousand, compared with $18,728 thousand a year earlier. Total shareholders' equity fell to $40,718 thousand at December 31, 2024, from $51,057 thousand at the end of 2023. The accumulated deficit reached $140,002 thousand.
The balance sheet shows 42,818,660 common shares outstanding at December 31, 2024. The 8,606,426 shares in this placement are added to that count at $3.50 each. The 8-K does not disclose any warrants issued with them.
The lead program and its setbacks
DM199 (rinvecalinase alfa), a recombinant form of human tissue kallikrein-1, is the lead candidate. It is in the Phase 2/3 ReMEDy2 trial for acute ischemic stroke, which the company says is intended to enroll about 300 participants at up to 100 sites. The FDA granted Fast Track designation for that indication in September 2021, and placed the trial's investigational new drug application on clinical hold in July 2022. The hold was lifted in June 2023.
The annual report says enrollment and site activations have been slower than expected, which the company believes is due in part to hospital staffing shortages. After an interim analysis of the first 200 participants, the study may be stopped for futility, or its final size will be set between 300 and 728 patients.
The preeclampsia study is a Phase 2, single-center, open-label, dose-escalation trial. An open-label study at one center has no placebo group to compare against, so its blood pressure readings cannot by themselves show that DM199 works.
The annual report also says that forms of KLK1 taken from human urine and from the pancreas of pigs are approved and sold in Japan, China and South Korea. The company says it is not aware of any recombinant version of KLK1 with regulatory approval for human use in any country.
What comes next
The closing is expected on or about July 23, 2025, and the resale registration statement follows within 10 business days. The company plans to file an investigational new drug application for further preeclampsia trials if its Phase 2 study succeeds. Longer term, it plans to develop DM300, a recombinant human ulinastatin, for severe acute pancreatitis. The annual report was signed by Rick Pauls, president and chief executive officer, and Scott Kellen signed the 8-K as chief financial officer.