Hermed Capital has agreed to to acquire 20 million shares in DiaMedica Inc for $4 million. Based in Minneapolis and Canada, DiaMedica is a biopharmaceutical company focused on treating neurological and kidney diseases.
WINNIPEG, MANITOBA and MINNEAPOLIS, MINNESOTA–(Marketwired – July 17, 2016) – DiaMedica Inc. (the “Company”) (TSX VENTURE:DMA)(OTCQB:DMCAF), today announced a strategic investment with Hermed Capital Healthcare Fund (“Hermed Capital”). 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.
DiaMedica is a Canadian publicly-traded clinical stage biopharmaceutical company focused on developing novel treatments for neurological and kidney diseases. DiaMedica’s shares are listed on the TSX Venture Exchange under the trading symbol “DMA” and on the OTCQB under the trading symbol “DMCAF”.
About Hermed Capital
Hermed Capital Healthcare Fund (the “Fund”) is a private equity fund that invests primarily in the healthcare industry. The Fund was initiated through a partnership between Fosun Pharmaceutical Group (“Fosun Pharma”) and SK Group (“SK”), as the General Partners and anchored investors.
Established in 1994 and listed on both the Shanghai and Hong Kong Stock Exchanges, Fosun Pharma (600196-SH; 02196-HK) is one of the largest healthcare conglomerates in China. In addition, the company has a leading domestic market position and unmatched advantages in pharmaceutical distribution and retail, healthcare services, diagnostic products, and medical devices, and maintains a strong focus on research and development, and manufacturing.
SK Group (“SK”) is a leading conglomerate in Korea, being one of the nation’s economic pillars, accounting for 11% of the country’s GDP and 11% of exports. SK is mainly engaged in energy and chemicals; information and telecommunication; marketing and logistics services; biopharmaceuticals; and real estate. Moreover, as a world-class pharmaceutical and healthcare service operator with prominent capability in R&D, SK has its R&D labs, manufacturing facilities, and distribution channels in different countries,including Korea, the United States, and China.