US LAWYER NEW CHAIRMAN AT DIAMYD MEDICAL; BULLETIN FROM THE ANNUAL GENERAL MEETING
Press Release, Stockholm, Sweden – December 12, 2006 – Diamyd Medical AB
(SWEDEN NOMX: DIAM B; U.S.A ADR: DMYDY)
At the Annual General Meeting of Diamyd Medical AB (publ) that was held in Stockholm, Sweden, on 11 December, 2006, Juris Doctor JOSEPH JANES, U.S.A, was elected Chairman of the Board. Dr. Janes’ prime area of expertise lies within the field of Merger & Acquisitions.
In addition the following is reported from the Meeting:
Annual Report and discharge from liability
The Company’s Income Statement and Balance Sheet were approved and the Board of Directors and the Chief Executive Officer were discharged from liability for the financial year 2005/2006.
Election of Board of Directors, Chairman of the Board, auditors and compensation to the Board
Peter Rothschild, Björn Nilsson, Joseph Janes and Anders Essen-Möller (all re-elected) and Hans Wigzell (new election) were appointed to the Board of Directors. Tord Lendau declined re-election.
The Meeting approved a compensation to the Chairman of Board of US$ 24,000 and an amount of US$ 12,000 to each of the other members of the Board.
PriceWaterHouseCoopers with Eva Riben as main responsible accountant, was elected as ordinary auditor together with Liselott Stenudd, PriceWaterHouseCoopers (new election).
Amendment of the Articles of Association
The Meeting approved the Board’s proposals regarding amendments to the Articles of Association required by the new Swedish Companies Act, which came into force on 1 January, 2006.
Authorisation 1
The Meeting authorized the Board of Directors to resolve, at one or more occasions until the next Annual General Meeting, to issue new shares with consideration by set-off, in cash or with other conditions and without regard to pre-emption rights. The total number of shares that can be issued based on this authorization shall not exceed 600,000.
Authorisation 2
The Meeting approved the Board of Directors’ proposal to implement an option scheme including the issuance of 250,000 purchase options to employees and close collaborators of the Diamyd Group. Each purchase option shall entitle the holder to acquire one series B-share. The Meeting also approved the issuance of 250,000 warrants in order to secure the Company’s obligations under the issued purchase options. At full execution of all of the above the dilution is calculated to approximately 2.5 percent.
Principles for compensation and other terms of employment for management
The Meeting approved the Board of Directors’ proposal for principles for compensation and other terms of employment for the President and Chief Executive Officer of the Company.
The CEO Anders Essen-Möller presented important aspects of the operations for the fiscal year.
• Diamyd® was proved to be safe and effective in preserving insulin-producing function in a phase II clinical trial in 70 patients with recent onset type 1 diabetes.
• 160 patients with autoimmune type 2 diabetes (LADA) were recruited and results are planned for June 2007.
• GAD65 for the development of a therapy to treat Parkinson’s disease was sublicensed to Neurologix Inc., NJ. Positive results have been reported from a phase I clinical trial.
• Nurel Therapeutics Inc., PA was acquired. This acquisition has brought to Diamyd Medical a gene therapy platform capable of delivering a variety of genes to the nervous tissue for treatment of several diseases (preclinical stage).
• Protein Sciences Corporation, CT was contracted to manufacture Diamyd® for future clinical trials.
• Diamyd Medical has invested US$ 3 million into a Protein Sciences convertible bond. Protein Sciences is developing a next-generation influenza vaccine.