Date: 2015-03-31
Type of information: Private placement
Company: Diamyd Medical (Sweden)
Investors: undisclosed group of international institutional investors, previously not shareholders in Diamyd Medical
Amount: SEK 15 million
Funding type: private placement
Planned used: This new financing will be used to focus more on partnership. Diamyd Medical is currently developing a cure for type 1 diabetes and LADA (Latent Autoimmune Diabetes in Adults). The Company’s projects include development of combination regimens with the GAD-based diabetes vaccine Diamyd® for arresting the destruction of insulin-producing beta cells. The Company exclusively licenses UCLA-rights to GAD65, the active ingredient in the vaccine, for which the last patent expires in 2032. Additionally, the Company exclusively licenses UCLA patents for using GABA for the treatment of diabetes and other inflammation-related conditions. Diamyd Medical is also one of the major shareholders in the stem cell company Cellaviva AB, which is establishing a Swedish commercial bank for private family saving of stem cells in umbilical cord blood and other sources of stem cells. Stem cells can be expected to be used in Personalized Regenerative Medicine (PRM), for example, to restore beta cell mass in diabetes patients where autoimmunity has been arrested.
Others: * On March 31, 2015, Diamyd Medical announced that the Company has accepted an offer from a group of international institutional investors, previously not shareholders in Diamyd Medical, to issue 2,000,000 new B shares in a direct placement at 7.50 SEK per share. Total proceeds to the Company amount to SEK 15 million. After registration of the new issue, the number of shares in Diamyd Medical will amount to 21,819,422, divided into 958,584 shares of series A and 20,860,838 shares of series B. The new shares represent 9.2 % of the capital and 6.6 % of the votes. The Board of Diamyd Medical decided on the new issue based on the authorization given by the Annual General Meeting on November 27, 2014.
Therapeutic area: Autoimmune diseases - Immunological diseases - Metabolic diseases
