Diamyd Medical announces preliminary outcome in the company’s rights issue

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Diamyd Medical AB (publ) (“Diamyd Medical” or the “Company”) today announces that the preliminary outcome for the rights issue of units (the “Rights Issue”), for which the subscription period ended today April 16, 2024, indicates that approximately 4.2 million units, corresponding to approximately 44 percent of the Rights Issue, have been subscribed for with unit rights. Additionally, applications for subscription of approximately 0.5 million units without unit rights, corresponding to approximately 5 percent of the Rights Issue, have been received. In aggregate, the subscriptions by exercise of unit rights and the applications for subscription without unit rights correspond to approximately 49 percent of the offered units. Thus, the preliminary outcome indicates that the Rights Issue will provide the Company with issue proceeds of approximately SEK 56 million before the deduction of costs attributable to the Rights Issue. Subscribers in the Rights Issue include the Chairman of the Board of Directors and founder Anders Essen-Möller (SEK 1 million), the Company’s largest shareholder Bertil Lindkvist (SEK 1 million), and other Senior Executives and members of the Board of Directors (SEK 0.6 million).

The Board of Directors in Diamyd Medical resolved on March 18, 2024, pursuant to the authorization granted by the Company's annual general meeting held on November 30, 2023, on a rights issue of up to approximately SEK 114 million.

Preliminary outcome
The preliminary outcome indicates that approximately 4.2 million units, of which approximately 0.2 million comprise of units containing A-shares, corresponding to approximately 44 percent of the offered units, have been subscribed for with unit rights in the Rights Issue. Additionally, applications for subscription of approximately 0.5 million B-units without unit rights, corresponding to approximately 5 percent of the offered units, have been received. Thus, the preliminary outcome indicates that the Rights Issue have been subscribed with the support of unit rights and subscription applications without the support of unit rights to approximately 49 percent. Through the Rights Issue, the Company will therefore receive approximately SEK 56 million before the deduction of costs attributable to the Rights Issue. Subscribers in the Rights Issue include the Chairman of the Board of Directors and founder Anders Essen-Möller (SEK 1 million), the Company’s largest shareholder Bertil Lindkvist (SEK 1 million), and other Senior Executives and members of the Board of Directors (SEK 0.6 million).

Notice of allotment
All those who have subscribed for units without unit rights will be allocated units in accordance with the principles set out in the EU growth prospectus which was approved and registered by the Swedish Financial Supervisory Authority on March 28, 2024. Notice of allotment to the persons who subscribed for units without unit rights is expected to be distributed on April 18, 2024. Subscribed and allotted units shall be paid in cash within three banking days in accordance with the instructions on the settlement note sent to the subscriber. Subscribers who have subscribed for units through a nominee will receive notification of allocation in accordance with their respective nominee’s procedures. Only those who have been allotted units will be notified.

Final outcome and trading in BTU’s
The final outcome of the Rights Issue is expected to be published around April 18, 2024. The last day of trading in paid subscribed units (Sw. BTU B) is expected to be May 8, 2024. The new B-shares and TO4 B subscribed for with and without unit rights are expected to be traded on Nasdaq First North Growth Market around week 20, 2024.

Advisors
G&W Fondkommission acts as Financial Advisor to Diamyd Medical in connection with the Rights Issue. MAQS Advokatbyrå is Legal Advisor to the Company and Aqurat Fondkommission AB has been appointed as Issuer Agent.

About Diamyd Medical
Diamyd Medical develops precision medicine therapies for the prevention and treatment of Type 1 Diabetes and LADA (Latent Autoimmune Diabetes in Adults). Diamyd^® is an antigen-specific immunomodulatory therapeutic for the preservation of endogenous insulin production that has been granted Orphan Drug Designation in the U.S. as well as Fast Track Designation (Feb-2024) by the U.S. FDA. DIAGNODE-3, a confirmatory Phase III trial is actively recruiting patients with recent-onset Type 1 Diabetes in eight European countries and in the US. Significant results have previously been shown in a large genetically predefined patient group - in a large-scale meta-analysis as well as in the Company’s prospective European Phase IIb trial, where Diamyd^® was administered directly into a superficial lymph node in children and young adults with recently diagnosed Type 1 Diabetes. Injections into a superficial lymph node can be performed in minutes and is intended to optimize the immune response. A biomanufacturing facility is under development in Umeå, Sweden, for the manufacture of recombinant GAD65 protein, the active ingredient in the antigen-specific immunotherapy Diamyd^®. Diamyd Medical also develops the GABA-based investigational drug Remygen^® as a component in the treatments of metabolic diseases. Diamyd Medical is a major shareholder in the stem cell company NextCell Pharma AB as well as in the artificial intelligence company MainlyAI AB.

Diamyd Medical’s B-share is traded on Nasdaq First North Growth Market under the ticker DMYD B. FNCA Sweden AB is the Company’s Certified Adviser.