Today, Wednesday, September 25, 2024, is the last day of trading in Diamyd Medical AB’s (publ) (“Diamyd Medical” or the “Company”) warrants of series TO 3, which were issued in 2023 as part of a rights issue of units. The exercise period for the warrants began on September 2, 2024, and continues until and including September 30, 2024. Two (2) warrants of either series TO 3 A or TO 3 B entitle the holder to subscribe for one (1) new share, of the corresponding share series, in the Company at a subscription price of SEK 11.00 per share. Several of the Company’s board members and senior executives, including Chairman of the Board and major shareholder Anders Essen-Möller, as well as CEO Ulf Hannelius, have announced their intention to exercise all of their held warrants of series TO 3, corresponding to a total of approximately SEK 5.1 million.
To ensure that your warrants do not expire worthless, you must actively subscribe for shares at the latest by September 30, 2024, or alternatively sell your warrants at the latest by September 25, 2024.
“Outstanding warrants are a key element of our financial strategy,” says Ulf Hannelius, CEO of Diamyd Medical. “We are also pleased to announce the receipt this September of a milestone payment from our existing collaborations, along with additional proceeds from the previous sale of Companion Medical shares, totaling corresponding SEK 17.5 million. These funds further support our accelerated approval efforts for our Type 1 Diabetes precision medicine, where we plan an earlier readout from the ongoing DIAGNODE-3 Phase 3 trial around March 2026.”
Summary of the terms
| Terms: | Two (2) warrants of series TO 3 entitle the holder to subscribe for one (1) new share in Diamyd Medical, where TO 3 A grants the right to subscribe for A shares, and TO 3 B grants the right to subscribe for B shares. |
| Issue volume: | There are a total of 9,165,682 outstanding warrants of series TO 3, of which 185,407 are TO 3 A and 8,980,275 are TO 3 B. Upon full exercise, Diamyd Medical will receive issue proceeds of approximately SEK 50.4 million before related issue costs. |
| Subscription price: | SEK 11.00 per share. |
| Declarations of intent: | Chairman of the Board and major shareholder Anders Essen-Möller, Vice Chairman of the Board Erik Nerpin, CEO Ulf Hannelius, and CFO Anna Styrud have announced their intention to exercise all of their held warrants of series TO 3, totaling approximately SEK 5.1 million. No fee is to be paid for the declared intents to subscribe. The subscription intentions are also not secured through pledging, blocking measures, or similar arrangements. |
Timeline for the exercise of TO 3
| September 2, 2024 – September 30, 2024 | Exercise period |
| Until and including September 25, 2024 | Trading in TO 3 B |
| October 2, 2024 | Announcement of the final outcome |
| October 11, 2024 | Record date for the conversion of IA to common shares |
| October 15, 2024 | New shares expected to be available in VP accounts and custody accounts |
How to exercise your warrants of series TO 3
Directly registered holders of warrants (VP account)
Directly registered holders of warrants must apply to exercise their warrants by filling in and submitting a subscription form for the exercise, ensuring that it is received by the issuer agent Aqurat no later than 15:00 CET on September 30, 2024. Please note that payment for the new shares must also be received by Aqurat no later than September 30, 2024, in accordance with the instructions on the subscription form.
The subscription form is available on Diamyd Medical’s website www.diamyd.com, on Aqurat’s website www.aqurat.se, and on G&W Fondkommission’s website www.gwkapital.se. Directly registered holders will also receive a letter from the CEO with information on the exercise of the warrants, and the subscription form by mail.
Nominee-registered holders of warrants (Custody account)
Nominee-registered holders of warrants must apply to exercise their warrants by contacting their bank/nominee and following the bank’s/nominee’s instructions regarding payment, etc. This should be done well in advance of September 30, 2024, as different banks/nominees have different processing times. Nominee-registered holders will receive a letter from the CEO with information on the exercise of the warrants by mail.
For any questions regarding the exercise of warrants, please contact:
Aqurat Fondkommission AB
Phone: +46 (0)8-684 05 800
Email: info@aqurat.se
Advisors
G&W Fondkommission acts as Financial Advisor to Diamyd Medical in connection with the exercise of warrants of series TO 3 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 by the U.S. FDA for the treatment of Stage 1, 2 and 3 Type 1 Diabetes. DIAGNODE-3, a confirmatory Phase III trial is actively recruiting patients with recent-onset (Stage 3) 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 lymphnode can be performed in minutes and are intended to optimize the treatment 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 and 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.
For further information, please contact:
Ulf Hannelius, President and CEO
Phone: +46 736 35 42 41
E-mail: ulf.hannelius@diamyd.com
Diamyd Medical AB (publ)
Box 7349, SE-103 90 Stockholm, Sweden. Phone: +46 8 661 00 26, Fax: +46 8 661 63 68
E-mail: info@diamyd.com Reg. no.: 556242-3797 Website: https://www.diamyd.com
The information was provided by the contact person above, for publication on September 25, 2024, 08.15 CET.
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