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MINNEAPOLIS - DiaMedica Therapeutics Inc. (NASDAQ:DMAC), a biopharmaceutical company with a strong financial health score of 2.31 according to InvestingPro, announced Monday it has secured $30.1 million in a private placement of common shares to fund its clinical development programs for preeclampsia, fetal growth restriction, and acute ischemic stroke. The company maintains a healthy balance sheet with more cash than debt and a robust current ratio of 8.02.
The biopharmaceutical company will issue 8,606,426 common shares at $3.50 per share to current investors. The transaction, which did not involve a placement agent, is expected to close around July 23, 2025, subject to customary closing conditions.
According to the company, the capital raised will extend its operational runway by more than two years. The funds will support upcoming milestones including the submission of an investigational new drug (IND) application in the United States for preeclampsia and fetal growth restriction, and a Phase 2b study to evaluate its DM199 drug candidate in both indications, pending regulatory 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. While InvestingPro analysis indicates analysts don’t expect profitability this year, the company has attracted significant attention from Wall Street, with analyst price targets ranging from $11 to $14 per share.
DM199, also known as rinvecalinase alfa, is a recombinant form of human tissue kallikrein-1 (rhKLK1). The drug is designed to address various physiological processes by increasing production of nitric oxide, prostacyclin and endothelium-derived hyperpolarizing factor.
The common shares issued in the private placement have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption from registration requirements.
The company noted that the private placement constitutes a related party transaction as defined in Canadian securities regulations, with certain non-management related parties providing binding commitments for the full $30.1 million investment.
This article is based on a press release statement from DiaMedica Therapeutics. The stock has shown strong momentum, delivering a 28.62% return over the past year despite recent market volatility. For deeper insights into DMAC’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 8 additional ProTips and extensive financial metrics.
In other recent news, DiaMedica Therapeutics reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of -0.18, compared to the forecasted -0.20. Despite the earnings beat, the company’s revenue remained at zero, aligning with forecasts. DiaMedica also announced positive interim results from its Phase 2 study of DM199 for preeclampsia treatment, demonstrating statistically significant reductions in blood pressure and improved uterine blood flow. The study achieved pre-specified safety and efficacy endpoints, and DM199 did not cross the placental barrier, indicating a favorable safety profile. H.C. Wainwright raised its price target for DiaMedica to $12 from $10, maintaining a Buy rating, following these promising interim results. Additionally, DiaMedica held its 2025 Annual General Meeting, electing seven board members and appointing Baker Tilly US, LLP as its independent registered public accounting firm. The company’s strong cash position, with $37.3 million in cash and investments, supports its ongoing clinical development programs. DiaMedica plans to proceed with further enrollment in its preeclampsia study and expand its clinical trials to the U.S. and global markets.
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