DIAMYD STRENGTHENS POSITION FOR FUTURE FINANCING AND DEALS
Press Release, Stockholm, Sweden, March 10, 2008 - Diamyd Medical AB
(www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)
At today's extra general shareholders' meeting in Diamyd Medical AB (publ) it
was decided, in agreement with the proposal from the Board of Directors, to
authorize the Board to upon one or more occasions before the next annual
shareholder's meeting, with or without deviation from the shareholder's
preferential right, decide to issue a maximum of 91,000 B-shares (which together
with the authorization from the annual shareholder's meeting allow issuing of
991,000 B-shares) and warrants which will give the right to subscribe for a
maximum of 991,000 B-shares.
After full execution of the authorization for the shares, the dilution effect
amounts to 10 percent of the share capital. After full execution of the
authorization for the warrants and if the warrants are fully exercised, the
dilution of the share capital amounts to another 10 percent.
”The purpose of this authorization is to finance our communicated strategy to
pursue Phase III studies in Europe and US according to plan. We are evaluating
several financing alternatives, but with the current stock market climate, our
primary strategy is to broaden our owner base through a direct placement to a
small number of stable, capital-bearing institutions”, says Elisabeth Lindner,
CEO and President of Diamyd Medical. “With this we are also continuing our
partnership discussions as a Phase III company, which increases the value of our
therapeutic diabetes vaccine Diamyd®.”
For further information, please contact:
Stockholm office
Elisabeth Lindner
CEO and President
+46 8 661 0026
elisabeth.lindner@diamyd.com
Stockholm office
Anders Essen-Möller
Chairman
+46 8 661 0026
anders.essen-moller@diamyd.com
Pittsburgh office
Michael Christini
President
+1 412 770 1310
michael.christini@diamyd.com
Diamyd Medical AB (publ). Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +46
8 661 00 26, fax: +46 8 661 63 68 or E-mail: info@diamyd.com. VATno:
SE556530-142001.
About Diamyd Medical
Diamyd Medical is a biopharmaceutical company developing treatments for diabetes
and its complications. The company's furthest developed project is the GAD-based
drug Diamyd® for autoimmune diabetes for which Phase III studies are planned.
Diamyd® has demonstrated significant and positive results in Phase II clinical
trials in Sweden.
GAD65, a major auto antigen in autoimmune diabetes, is the active substance in
Diamyd. GAD65 is also an enzyme that converts the excitatory neurotransmitter
glutamate to the inhibitory transmitter GABA. In this context, GAD may have an
important role not only in diabetes but also in several central nervous
system-related diseases. Diamyd Medical has an exclusive worldwide license from
the University of California at Los Angeles regarding the therapeutic use of the
GAD65 gene.
Diamyd Medical has sublicensed its UCLA GAD Composition of Matter license to
Neurologix, Inc. in Fort Lee, New Jersey for treatment of Parkinson's disease.
Other projects comprise drug development within therapeutic gene transfer using
the exclusively licensed and patent protected Nerve Targeting Drug Delivery
System (NTDDS). The company's lead NTDDS projects include enkephalin and GAD for
chronic pain, e.g., diabetes pain or cancer pain.
Diamyd Medical has offices in Stockholm, Sweden and Pittsburgh, PA. The Diamyd
Medical share is quoted on the Stockholm Nordic Exchange in Sweden (NOMX ticker:
DIAM B) and on the OTCQX-list in the United States (ticker: DMYDY) administered
by the Pink Sheets and the Bank of New York (PAL). Further information is
available at www.diamyd.com.
Disclaimer: This document contains certain "statements" relating to present
understandings, future events and future performance, including statements
relating to the progress, timing and completion of our research, development and
clinical trials; our ability to market, commercialize and achieve market
acceptance for product candidates; and our current and future strategic partner
relationships. These statements can be affected by inaccurate assumptions or by
known or unknown risks and uncertainties. Diamyd Medical undertakes no
obligation to publicly update such statements, whether because of new
information, future events or otherwise, nor does Diamyd Medical give any
guarantees that the statements, given or implied, are correct. This document is
a translation from the Swedish original. No guarantees are made that the
translation is free from errors.
