(via Thenewswire.ca)
WINNIPEG, Manitoba - April 2, 2012 - DiaMedica Inc. (TSX-V:DMA) is pleased to announce that it has received conditional approval from the the TSX Venture Exchange (the "TSXV") for an incentive program (the "Incentive Program") to encourage the early exercise of the 3,105,000 warrants that were previously issued in connection with DiaMedica's short form prospectus offering in July, 2011 (the "Original Warrants"). The Original Warrants have an exercise price of $1.50 per common share, and if all of the Original Warrants are exercised under the Incentive Program, DiaMedica will receive aggregate gross proceeds of $4,657,500. Any proceeds received as a result of the Incentive Program will be used for substantially the same purposes as set out in the final short form prospectus of DiaMedica dated July 7, 2011.
The TSXV has conditionally approved the Incentive Program, subject to DiaMedica satisfying all of the conditions of the TSXV, and therefore DiaMedica will amend the Original Warrants and expects to give notice (the "Notice") to the holders of Original Warrants of the Incentive Program within the next 10-trading days setting out detailed instructions in connection with the Incentive Program. The Incentive Program will be available to holders of Original Warrants for a 30-day period ending on a date that will be set out in the Notice (the "Expiry Date").
Incentive Program
In order to encourage the early exercise of the Original Warrants, DiaMedica will amend the terms of the Original Warrants to enable the holders thereof to receive a unit (a "Unit") in lieu of a common share of DiaMedica if they exercise their Original Warrants prior to the Expiry Date. Each Unit will consist of one common share in the capital stock of DiaMedica and one-half of one warrant (each whole warrant, a "New Warrant"). Each New Warrant will entitle the holder thereof to acquire a common share in DiaMedica at a price of $2.50 per share for 24 months following the date of issue of the Unit (the "New Warrant Expiry Date").
In addition, in the event the volume-weighted average trading price of DiaMedica's common shares on the TSXV (or such other exchange as the Company's common shares may be listed on) exceeds $3.00 per share for a period of 10 consecutive trading days following the Expiry Date, DiaMedica may, at its option, accelerate the New Warrant Expiry Date by delivery of notice (a "Warrant Acceleration Notice") to the holders of New Warrants (the "New Warrantholders") and issuing a press release announcing such acceleration (a "Warrant Acceleration Press Release"), and, in such case, the New Warrant Expiry Date shall be deemed to be the 30th day following the later of: (i) the date on which the Warrant Acceleration Notice is sent to Warrant holders; and (ii) the date of issuance of the Warrant Acceleration Press Release.
If a holder of Original Warrants does not exercise their Original Warrants by the Expiry Date, the Original Warrants will continue to be exercisable for common shares on their original terms.
About DiaMedica
DiaMedica is a biopharmaceutical company focused on discovery and development of novel therapeutic compounds for diabetes and other major, medically-unmet diseases. DiaMedica's lead compound, DM-199, is a recombinant human protein that represents a novel approach to treating Type 1 and Type 2 diabetes. In a Type 1 diabetes model, DM-199 halted the autoimmune attack on beta cells by stimulating regulatory T-cells, and resulted in a 12-fold increase in C-peptide levels. In Type 2 diabetes models, DM-199 treatment stimulated proliferation of insulin producing beta cells, resulting in significant improvement in glucose control.
DiaMedica is also developing a novel monoclonal antibody, DM-204 as a treatment for Type 2 diabetes. Chronic treatment with DM-204 in a Type 2 diabetes model resulted in significant improvement in blood glucose control and HbA1c levels and also significant decreases in blood pressure and serum cholesterol.
Diamedica's DM-199 and DM-204 were both named Windhover's "2011 Top 10 Cardiovascular/ Metabolic Projects to Watch".
The Company is listed on the TSX Venture Exchange under the trading symbol 'DMA'.
For further information please contact:
Rick Pauls
President and CEO
DiaMedica Inc.
200-135 Innovation Drive
Winnipeg, MB R3T 6A8
Phone: 204.477.7590
info@diamedica.com
FORWARD-LOOKING STATEMENTS
The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address DiaMedica's expectations, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect a current view of future events and are subject to certain risks and uncertainties as contained in the Company's filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those anticipated in these forward-looking statements. The Company undertakes no obligation, and does not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although management believes that expectations are based on reasonable assumptions, no assurance can be given that these expectations will materialize.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.
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