STOCKHOLM, Sweden, April 21 /PRNewswire-FirstCall/ -- Diamyd Medical AB (publ) has decided on, and successfully executed, a direct placement of in total 991,000 series B shares. The shares have been placed with a limited group of professional investors at a price of 73 SEK per share. The issue raises 72.3 MSEK in total for the Company before issue costs. For each issued and paid new share one warrant is received free of charge, which gives the right to subscribe for a series B share at a price of 100 SEK during April 2009. Full use of the issued warrants will generate an additional 99.1 MSEK in proceeds to the Company.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20080314/297194 )

    (Photo: http://www.newscom.com/cgi-bin/prnh/20080421/301418 )

'This issue takes us one further step towards the commercialization of our therapeutic diabetes vaccine Diamyd(R),' says Elisabeth Lindner, President and CEO of Diamyd Medical. 'At the same time as resources are secured for financing of the clinical phase III studies which are needed for market approval, we will now continue our partnership discussions for Diamyd(R) and NTDDS from a position of strength. I am warmly welcoming our new shareholders.'

Stockholm Corporate Finance has been financial advisor to Diamyd regarding the issue.

This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.

Diamyd Medical is a Swedish biopharmaceutical company focusing on development of pharmaceuticals for treatment of autoimmune diabetes and its complications. The company's most advanced project is the GAD-based drug Diamyd(R) for type 1- diabetes and for which Phase III trials have been initiated in both the US and Europe. Furthermore the company has initiated clinical studies within chronic pain, using its Nerve Targeting Drug Delivery System (NTDDS). The company has also out-licensed the use of GAD for the treatment of Parkinson's disease.

Diamyd Medical has offices in Sweden and in the US. The share is quoted on the OMX Stockholm Nordic Exchange (ticker: DIAM B) and on OTCQX in the US (ticker: DMYDY) administered by the Pink Sheets and the Bank of New York (PAL). Further information is available on the company's web site: http://www.diamyd.com

For more information, please contact:

Elisabeth Lindner, President and CEO Diamyd Medical AB (publ.), elisabeth.lindner@diamyd.com, Phone: +46-8-661-0026

For pictures and press material, please contact:

Sonja Catani, Chief Communications Officer Diamyd Medical AB (publ.), sonja.catani@diamyd.com, Phone: +46-8-661-00-26

SOURCE Diamyd Medical AB (publ)

Source: PR Newswire (April 21, 2008 - 6:22 AM EDT)

News by QuoteMedia
www.quotemedia.com