DiaMedica Cancels Proposed Financing...Awaiting Results of PNovember 05, 2014 20:28 ET DiaMedica Cancels Proposed Financing Awaiting Results of Phase II Clinical Trial MINNEAPOLIS, MINNESOTA--(Marketwired - Nov. 5, 2014) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES DiaMedica Inc. (TSX VENTURE:DMA), a clinical stage biopharmaceutical company primarily focused on the development of novel, first-in-class treatments for diabetes and kidney disease, today announced that it has cancelled its previously announced public offering for the issuance of up to 24 million units at a price of $0.25 per unit. As a result of such cancellation, no shares will be sold pursuant to the proposed offering. The financing, originally announced on October 22, 2014, had been expected to close on or about November 11, 2014. However, the Company's randomized, placebo-controlled, double-blinded Phase II clinical trial of DM199 in patients with type 2 diabetes mellitus was recently completed and it now expects to receive the results of the study from the clinical research organization in mid-November. As a result, the Company elected to cancel the financing. "After careful consideration, we made the difficult decision to cancel the proposed public offering," said Rick Pauls, DiaMedica President & CEO. "Ultimately, we concluded it would be in the best interest of all DiaMedica shareholders to report the results of the Phase II study before completing a prospectus financing. The completion of this Phase II study represents another significant milestone for DiaMedica and we look forward to sharing the results." A total of 37 patients were enrolled with 35 completing the entire one-month study. The primary endpoints of the study are to evaluate the safety, tolerability and pharmacokinetics of two dose levels of DM199. Secondary endpoints include evaluating the effects of DM199 on diabetes biomarkers including: fasting glucose, insulin and C-peptide; meal tolerance test; HOMA2-IR; HbA1c; lipids and other metabolic markers. Prior to the study, the patients complete a one-month wash out of their diabetes mediations and then are sequestered for the month-long study. About DiaMedica DiaMedica is a publicly traded (TSX VENTURE:DMA) clinical stage biopharmaceutical company focused on the discovery and development of novel therapies to treat diabetes and kidney disease. DiaMedica's lead clinical product, DM199, is a recombinant human protein known as rhKLK1 that represents a novel approach to treating diabetes and kidney disease. DiaMedica is also developing a monoclonal antibody, DM204, for the treatment of Type 2 diabetes, which is in preclinical development. DiaMedica's common shares are listed on the TSX Venture Exchange in Canada under the trading symbol 'DMA'.