Diamyd’s new share issue substantially oversubscribed

Diamyd Medical reports today that the Company’s rights issue of just under 220 MSEK has been substantially oversubscribed. Subscriptions equal to a total sum of 384 MSEK have been received.

3 109 514 shares have been subscribed and paid for with the support of subscription rights, totalling a payment of 217 665 980 SEK. This represents 99.3 percent of the total subscription rights. Those who exercised their subscription rights have received interim shares (BTA), traded on the Nasdaq OMX in Stockholm (Small Cap list) with ticker DIAM BTA 1B, until registration is processed at Bolagsverket. Subscriptions corresponding to an additional 2 381 169 shares or 166 681 830 SEK without support of subscription rights have also been received. The Board of Directors of Diamyd Medical has decided on the allocation of the shares that have not been subscribed for with subscription rights, according to principles described in the Prospectus. Those who have received such allocation will be informed, through an assignment notice, within the next couple of days. “The share issue got a fantastic response with an almost one hundred percent utilisation of the subscription rights,” says Elisabeth Lindner, President and CEO of Diamyd Medical. “This means that we have succeeded to communicate this offer also to our many small shareholders, which is particularly gratifying,” Elisabeth Lindner continues. The additional capital is planned to last for two years with current development program and to cover with margin the costs that the Company anticipates incurring until data from the current Phase III program is expected to be available. The capital is also intended to strengthen the Company’s bargaining position in current partnership negotiations. An extra shareholders’ meeting at Diamyd Medical AB (publ) held October 7, 2009, decided, in accordance with the proposal put forward by the Board of Directors, to implement a new share issue of just under 220 MSEK with preferential rights for existing shareholders. Record day was October 14, 2009, and the Subscription period was October 16 – 30, 2009. Every twenty-five (25) existing shares entitled to subscription of seven (7) new shares. The issue price was 70 SEK per share.

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