DiaMedica has announced a strategic investment with Hermed Capital Healthcare Fund. Hermed Capital Healthcare Fund is a healthcare investment fund in partnership with the Shanghai Fosun Pharmaceutical Group and SK Group (a South Korea-based Fortune Global 100 Company).
The investment agreement provides for Hermed Capital to invest $4.0 million for a total of 20 million common shares of the company at $0.20 per common share in two tranches. The 10 day volume-weight average price was CND$0.26 on 13 July 2016. The first tranche will be $1.0 million, whereas the second tranche of $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 ischaemic 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.