Hermed Capital Healthcare Fund, a fund partnership between Shanghai Fosun Pharmaceutical Group and SK Group, has made a strategic investment in DiaMedica.
The investment agreement will see Hermed Capital invest USD4.0 million for a total of 20 million common shares of the company at USD0.20 (approx. CND0.26) per common share in two tranches.
The 10 day volume-weight average price was CND0.26 on 13 July 2016. The first tranche will be USD1.0 million, while the second tranche of USD3.0 million is anticipated to close in August 2016.
The closing of each tranche is subject to customary closing conditions contained in the investment agreement, as well as TSX Venture Exchange approval.
"We are delighted to have Hermed Capital provide a strategic investment to further validate the potential of DM199 in China and for worldwide use for the treatment of neurological and kidney diseases," says Rick Pauls, DiaMedica's president and CEO. "DiaMedica is funded through its next major milestones, including upcoming clinical trial."
"We are excited to have the opportunity to invest in DiaMedica," says Dr Jerry Xiao, managing director of Hermed Capital. "We look forward to working with DiaMedica in positioning DM199 for the growing Chinese markets of acute ischemic stroke and diabetic kidney disease markets, as a strategic partner we'll leverage our resources in China. DM199 will also provide further commercial opportunities globally."
DiaMedica intends to use the offering proceeds toward advancing its R&D programmes including an upcoming DM199 clinical trial, and general corporate purposes.
