DiaMedica Therapeutics Inc. (Nasdaq: DMAC) has secured $30.1 million in a private placement to accelerate development of its lead candidate DM199 for preeclampsia and fetal growth restriction, two serious maternal-fetal conditions that currently lack approved therapeutic options.
The clinical-stage biopharmaceutical company announced definitive agreements for the private placement led by current investors, with no placement agent engaged for the transaction. Under the terms of the securities purchase agreements, DiaMedica will issue 8,606,426 common shares at $3.50 per share, with closing expected on or about July 23, 2025.
Funding Strategic Development Milestones
The capital raised is expected to fund DiaMedica's operations for more than two years and support critical upcoming milestones. These include the submission of an investigational new drug (IND) application in the United States for preeclampsia and fetal growth restriction, followed by a Phase 2b study to further evaluate DM199 in both indications, pending IND approval.
"This financing allows us to rapidly accelerate our development efforts in preeclampsia and fetal growth restriction, both of which have no approved treatment options currently," said Rick Pauls, President and CEO of DiaMedica. "We believe DM199 has the potential to be a disease-modifying therapy for these patients, and look forward to building upon what is already the most advanced clinical program targeting these conditions."
DM199's Therapeutic Mechanism
DM199 (rinvecalinase alfa) is a recombinant form of human tissue kallikrein-1 (rhKLK1) in clinical development for preeclampsia, fetal growth restriction and acute ischemic stroke. KLK1 is a serine protease enzyme that plays an important role in the regulation of diverse physiological processes via a molecular mechanism that increases production of nitric oxide, prostacyclin and endothelium-derived hyperpolarizing factor.
In preeclampsia and fetal growth restriction, DM199 is intended to lower blood pressure, enhance endothelial health and improve perfusion to maternal organs and the placenta. For stroke applications, the therapy is intended to increase collateral circulation in the penumbra following a stroke.
Regulatory and Transaction Details
The private placement constitutes a "related party transaction" under Canadian securities regulations, as DiaMedica received binding commitments from certain non-management, related parties for the full $30.1 million amount. The transaction will be exempt from valuation and minority shareholder approval requirements as neither the fair market value of the shares nor consideration paid exceeds 25% of the company's market capitalization.
The common shares in the private placement have not been registered under the U.S. Securities Act of 1933, and DiaMedica has agreed to file a registration statement with the U.S. Securities and Exchange Commission registering the resale of the shares issued in the private placement.
