A Plymouth biopharmaceutical company, DiaMedica Therapeutics Inc., is proposing a stock offering to raise $15 million for the development and commercialization of a new drug to treat neurological and kidney diseases.
The company filed an initial registration statement for a stock offering with the Securities and Exchange Commission on Friday. The filing did not specify how many shares the company would offer or the price per share.
Proceeds of the offering would be used to fund further development and testing of DM199, a synthetic version of a human protein produced in the kidneys, pancreas and salivary glands.
The protein, kallikrein-1 (KLK1), plays a role in managing inflammation in the body and is thought to be beneficial to patients suffering from a lack of blood flow to the brain and kidneys.
"We have made significant progress in positioning DM199 to treat patients with stroke and kidney diseases," said Rick Pauls, DiaMedica's president and chief executive in a statement. "This year, we have initiated a Phase II clinical study in patients who have suffered from an acute ischemic stroke, and we are about to initiate a clinical study in patients with chronic kidney disease.
"With the anticipated upcoming clinical and other milestones, we have determined that it is the right time for our company to apply for a U.S. Nasdaq listing."
Since its inception, the company has funded its operations from the public and private sales of equity, the exercise of warrants and stock options. As part of the new stock offering, DiaMedica is implementing a consolidation of its outstanding common shares that was approved by existing shareholders earlier this month.
Existing common shares of the company trade in Canada on the TSX Venture Exchange under the symbol DMA and in the United States on the over-the-counter OTCQB marketplace as DMCAF.
