Following a couple of strategic developments, DiaMedica Therapeutics Inc.’s (NASDAQ: DMAC) shares are surging on US stock charts today. As of the most recent check, DMAC stock has gained 30.97% during the current-market session, reaching $2.96.

Agreement Details

DiaMedica (DMAC) has signed definitive agreements to offer its common shares to accredited investors in a private placement. DMAC expects to receive $11.8 million in gross proceeds from this transaction. As per the conditions mentioned in the securities purchase agreements, DiaMedica will issue 4,720,000 common shares at a $2.50 per share purchase price.

The anticipated closing date of this private placement is June 28, 2024, subject to the satisfaction of normal closing requirements. The net proceeds of this private placement will be used to further DiaMedica’s efforts related to product development and clinical research, particularly with regard to DM199.

This involves increasing clinical research on preeclampsia and sponsoring the crucial Phase 2/3 ReMEDy2 study for the treatment of acute ischemic stroke. The money will also go toward general business objectives and additional working capital, extending DiaMedica’s financial runway until the third quarter of 2026.

Expanding Clinical Trial To Preeclampsia

Additionally, DiaMedica has disclosed that it intends to broaden clinical studies into preeclampsia, a hypertensive pregnancy disease for which there are no FDA-approved therapies and huge unmet medical needs. Preeclampsia is a potentially fatal illness that is marked by newly developed hypertension, proteinuria, and/or end organ malfunction. It poses serious dangers to both the mother and the unborn child.

As of right now, neither Europe nor the United States have authorized therapies for preeclampsia. Studies show that DM199 can successfully reduce blood pressure. DM199 is a big molecule protein that has been demonstrated in animal experiments to not penetrate the placental barrier, potentially providing a considerable safety advantage in illnesses associated to pregnancy, unlike small molecule anti-hypertensives, which are contraindicated.

With up to 120 participants and an expected cost of around $1.5 million, the preeclampsia study is planned to be very cost-efficient and provide a solid proof of concept for this indication.