Shareholders in Diamyd Medical AB representing a majority of the votes in the
Company have reached an agreement to distribute the parent company’s excess cash
to the shareholders and to convert all shares to series B shares with equal
voting power. They have further agreed that the shares in the subsidiary Diamyd
Therapeutics AB shall be distributed to the shareholders and that the subsidiary
shall be capitalized with SEK 50 million. The planned Extraordinary General
Meeting of Diamyd Medical AB to be held on March 13, 2013 will be cancelled as a
consequence of the agreement.
The above solution is the result of a mutual agreement reached today between the
shareholder and Chairman of the Board of Directors, Anders Essen-Möller, and a
group of other shareholders. The same group of shareholders had requested an
Extraordinary General Meeting that has been summoned to for March 13, 2013 in
order to address their proposal that Diamyd Medical AB enter into liquidation.
Following today’s agreement that request will be withdrawn and the Extraordinary
General Meeting will be cancelled.
“We have agreed on a solution that benefits all shareholders and our staff
without slowing down the development of our diabetes vaccine” says Anders Essen
-Möller. “Now we look ahead to continue our work to find a long term solution
for all that are afflicted by diabetes.”
The parties will collaborate to as soon as possible identify new members for the
Board of Directors of Diamyd Medical AB. Anders Essen-Möller will be proposed as
a member of the Board.
The agreement entails the following:
1. The shares in the subsidiary Diamyd Therapeutics AB where the current
activities within diabetes have been gathered will be distributed to the
shareholders. That company will be capitalized with SEK 50 million. That company
will have series A and series B shares in the same manner as Diamyd Medical AB
has today. Anders Essen-Möller will be proposed to become the Chairman of the
Board. The intention is that this company will be listed.
2. Following the distribution of Diamyd Therapeutics AB, all series A shares in
Diamyd Medical AB will immediately be converted to series B shares. Anders Essen
-Möller who is the only holder of series A shares has committed to convert his
series A shares to series B shares. Remaining in Diamyd Medical AB will be the
rest of the liquid assets amounting to approximately SEK 300 million, and the
holdings in Protein Sciences Corporation and Mercodia AB.
3. The greater part of the liquid assets in Diamyd Medical AB are proposed to
be distributed to the shareholders as soon as possible. Some cash will be set
aside to be used to manage the other remaining assets until the value of those
assets can be realized and distributed to the shareholders.
For more information, please contact:
Anders Essen-Möller, Chairman Diamyd Medical AB
Phone: 070-551 0679. E-mail: press@diamyd.com
About Diamyd Medical
Diamyd Medical was founded in 1996 and is active in the field of pharmaceutical
development. Diamyd Medical is headquartered in Stockholm, Sweden. The Company’s
development project consists of the protein GAD for the treatment and prevention
of autoimmune diabetes. Two Swedish researcher-initiated Phase II studies are
ongoing. One study evaluates whether GAD can prevent type 1 diabetes in children
who are at high risk of developing the disease and one study evaluates whether
GAD in combination with relatively high doses of vitamin D and ibuprofen can
preserve the body's own ability to control the blood sugar level in children and
adolescents newly diagnosed with type 1 diabetes.
Diamyd Medical also has holdings in the gene therapy company Periphagen
Holdings, Inc. (USA), the vaccine company Protein Sciences Corporation (USA) and
the diagnostics company Mercodia AB (Sweden).
Diamyd shares are listed on Nasdaq OMX (segment Small Cap) in Stockholm (ticker:
DIAM B) and on OTCQX in the US (ticker: DMYDY) administered by the Pink OTC
Markets and the Bank of New York Mellon (PAL). Further information is available
on the Company’s website: www.diamyd.com.
This information is disclosed in accordance with the Swedish Securities Markets
Act, the Swedish Financial Instruments Trading Act, or the requirements stated
in the listing agreements.
Diamyd Medical AB (publ)
Karlavägen 108, SE-115 26 Stockholm, Sweden. Phone: +46 8 661 00 26, Fax: +46 8
661 63 68
E-mail: info@diamyd.com. Reg. no: 556530-1420
