DiaMedica Therapeutics Secures $30.1 Million in Oversubscribed Private Placement to Bolster Advancement of Neurological and Maternal Health Pipeline
Proceeds strengthen company’s financial runway as it targets innovative treatments for preeclampsia, fetal growth restriction, and acute ischemic stroke
DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage biopharmaceutical company developing first-in-class treatments for serious neurological and maternal-fetal disorders, announced the successful completion of a $30.1 million private placement of common shares to accredited investors. The capital raise, which closed on July 23, 2025, represents a significant milestone in the company’s strategic roadmap and signals growing investor confidence in its pipeline and mission.
Through the private placement, DiaMedica issued approximately 8.6 million common shares at a purchase price of $3.50 per share. After deducting estimated transaction expenses, the company received net proceeds of approximately $29.9 million. These funds will be used to accelerate the development of the company’s lead clinical programs targeting preeclampsia, fetal growth restriction (FGR), and acute ischemic stroke (AIS)—areas where limited therapeutic options exist and medical needs remain largely unmet.
With this transaction, DiaMedica’s pro forma cash, cash equivalents, and short-term investments as of March 31, 2025, would total approximately $67.2 million, up from its reported $37.3 million. This infusion of capital provides a fortified financial foundation to support multiple planned clinical milestones and operational initiatives in the coming quarters.
Transformative Investment to Drive Pipeline Progress
DiaMedica is currently advancing its lead asset, DM199 (recombinant human tissue kallikrein-1 or rhKLK1), a novel therapeutic candidate designed to restore KLK1 activity in patients suffering from diseases characterized by vascular dysfunction, inflammation, and impaired perfusion. DM199 is being developed as a potential disease-modifying treatment for several indications where KLK1 deficiencies or disruptions in the kallikrein-kinin system are implicated.
The company’s current development priorities include:
- Preeclampsia: A pregnancy-specific hypertensive disorder with no FDA-approved treatment to delay disease progression. Preeclampsia is a leading cause of maternal and neonatal morbidity and mortality worldwide.
- Fetal Growth Restriction (FGR): A severe condition in which a fetus is unable to grow to its genetic potential due to placental insufficiency, leading to long-term developmental challenges and risks of perinatal death.
- Acute Ischemic Stroke (AIS): A neurological emergency that represents approximately 87% of all strokes. Despite the availability of thrombolytics and mechanical thrombectomy, treatment windows are narrow and few patients benefit from existing interventions.
The additional capital will enable DiaMedica to accelerate development of DM199 across these indications, expand clinical sites, and deepen its biomarker-driven clinical strategy.
Securities Issuance and Regulatory Compliance
The securities issued in the private placement were sold in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, as amended. The shares have not been registered under U.S. federal or state securities laws and are therefore subject to resale restrictions. However, DiaMedica has committed to filing a registration statement with the U.S. Securities and Exchange Commission (SEC) within ten days of the offering’s close, facilitating resale by investors at a future date, subject to SEC review and effectiveness of the registration.
The private placement does not constitute an offer to sell or the solicitation of an offer to buy DiaMedica securities in any jurisdiction where such action would be unlawful prior to registration or qualification under applicable laws.
Significant Participation from Strategic and Related Investors
The private placement drew substantial interest from new and existing investors, including significant participation by non-management related parties in accordance with Canadian securities regulations. Related parties acquired approximately $16.8 million in shares—nearly 56% of the total offering—illustrating their deepened commitment to DiaMedica’s future.
Canadian Related Party Transaction Disclosures
Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101), the participation of related parties in the private placement qualifies as a “related party transaction.” However, the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 under exemptions outlined in sections 5.5(a) and 5.7(1)(a). These exemptions apply because neither the fair market value of the common shares purchased by the related parties, nor the consideration paid, exceeds 25% of DiaMedica’s market capitalization.
The transaction received unanimous approval from a special committee of independent directors. Due to the urgency of completing the financing and the direct impact on advancing critical clinical programs, the company believes the decision to file the material change report less than 21 days before closing was reasonable and necessary under the circumstances.
Early Warning Disclosures: Strategic Stakeholders Expand Holdings
As part of Canadian securities law compliance, three investors filed early warning reports to disclose changes in their ownership positions. The filings reflect their increased stakes in DiaMedica following the transaction.
Thomas von Koch Acquisition
Swedish investor Thomas von Koch, through his entity TomEnterprise Private AB, acquired 2,857,142 common shares for an aggregate purchase price of $10 million. Prior to the investment, von Koch held approximately 12.8% of DiaMedica’s outstanding shares. With this acquisition, his holdings increase to 8,383,577 shares—representing approximately 16.2% of the company on a non-diluted basis.
Von Koch has stated the shares were acquired for investment purposes and retains the right to increase or reduce his holdings based on future market conditions, corporate performance, or personal investment strategy. A corresponding early warning report has been filed with Canadian regulators and is available via SEDAR+.
Trill AB Acquisition
Another strategic investor, Trill AB, based in Stockholm, Sweden, acquired 1,542,857 shares for a total investment of $5 million. Trill’s pre-transaction holdings stood at 5,221,608 shares (approximately 12.1% of the company), and now total 6,764,465 shares or approximately 13.1% of DiaMedica’s outstanding stock.
Like von Koch, Trill cited investment motives for the purchase. The investor maintains flexibility to adjust its holdings in accordance with applicable laws and internal investment policies. Trill’s early warning disclosure is also publicly accessible on SEDAR+.
Jacinto Acquisition
NFS/FMTC Roth IRA FBO Richard Jacinto II, managed via Fidelity Investments, acquired 400,000 shares for $1.4 million. Prior to this acquisition, Jacinto held approximately 10.6% of DiaMedica’s shares, or 4,558,823 shares. Post-transaction, Jacinto owns 4,958,823 shares, now representing approximately 9.6% of the company.
Though Jacinto’s percentage ownership slightly decreased due to dilution from the larger offering, the investment signifies continued confidence in the company’s direction. A corresponding early warning report was filed and is available for review.
All Canadian dollar equivalents in the early warning disclosures were calculated based on the Bank of Canada daily exchange rate as of July 22, 2025.
Strategic Outlook and Investor Confidence
This private placement represents a pivotal moment for DiaMedica Therapeutics as it sharpens its focus on bringing innovative therapeutics to patients in areas long overlooked by mainstream drug development. The company’s lead asset, DM199, is being positioned as a versatile therapeutic with potential applications across a spectrum of serious vascular and neurological conditions.
The high level of investor interest—particularly from related parties and repeat investors—underscores market enthusiasm around DiaMedica’s scientific platform, regulatory progress, and clinical momentum. The company’s ability to close a substantial financing round in a challenging capital market environment speaks volumes about the credibility of its leadership team and the potential of its pipeline.
Upcoming Milestones and Next Steps
Armed with fresh capital and a reinforced balance sheet, DiaMedica plans to execute several key initiatives over the next 12 to 18 months, including:
- Advancing Phase 2 studies of DM199 in preeclampsia and fetal growth restriction.
- Continuing enrollment in acute ischemic stroke trials.
- Initiating regulatory interactions to support potential breakthrough designation or accelerated pathways.
- Presenting updated clinical data at leading neurology and maternal health conferences.
- Expanding manufacturing capabilities and optimizing supply chain strategies for scale-up.
The company is also expected to provide updates on biomarker development, companion diagnostics, and strategic collaborations aimed at enhancing the clinical and commercial value of DM199.
DiaMedica Therapeutics’ $30.1 million private placement marks more than just a successful fundraising event—it is a validation of the company’s mission to challenge therapeutic boundaries in neurology and maternal-fetal medicine. By mobilizing support from committed stakeholders, DiaMedica is well positioned to accelerate the development of potentially life-changing therapies and to redefine care paradigms in areas where current treatment options fall short.
As the company moves forward with a robust cash position and strong shareholder backing, the coming months promise to be transformative for both its pipeline and the patients it seeks to serve.
