Monday, July 18, 2016
DiaMedica Inc., today announced a strategic investment with Hermed Capital Healthcare Fund. Hermed Capital Healthcare Fund is a healthcare investment fund in partnership with Shanghai Fosun Pharmaceutical Group (HKSE:02196-HK) and SK Group (a South Korea based Fortune Global 100 Company).
The investment agreement provides for Hermed Capital to invest USD$4.0 million for a total of 20 million common shares of the Company at USD$0.20 (~CND$0.26) per common share in two tranches. The 10 day volume-weight average price was CND$0.26 on July 13, 2016. The first tranche will be USD$1.0 million, while the second tranche of USD$3.0 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," commented 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," stated Dr. Jerry Xiao, Managing Director of Hermed Capital, continuing, "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 programs including an upcoming DM199 clinical trial, and general corporate purposes.
Source : finance.yahoo.com
