Diamyd Medical: Diamyd’s major shareholders reach agreement
STOCKHOLM -- February 18, 2013
Shareholders in Diamyd Medical AB (STO:DIAMB)(Pink Sheets:DMYDY) representing
a majority of the votes in the Company have reached an agreement to distribute
the parent company’s excess cash to the shareholders and to convert all shares
to series B shares with equal voting power. They have further agreed that the
shares in the subsidiary Diamyd Therapeutics AB shall be distributed to the
shareholders and that the subsidiary shall be capitalized with SEK 50 million.
The planned Extraordinary General Meeting of Diamyd Medical AB to be held on
March 13, 2013 will be cancelled as a consequence of the agreement.
The above solution is the result of a mutual agreement reached today between
the shareholder and Chairman of the Board of Directors, Anders Essen-Möller,
and a group of other shareholders. The same group of shareholders had
requested an Extraordinary General Meeting that has been summoned to for March
13, 2013 in order to address their proposal that Diamyd Medical AB enter into
liquidation. Following today’s agreement that request will be withdrawn and
the Extraordinary General Meeting will be cancelled.
“We have agreed on a solution that benefits all shareholders and our staff
without slowing down the development of our diabetes vaccine” says Anders
Essen-Möller. “Now we look ahead to continue our work to find a long term
solution for all that are afflicted by diabetes.”
The parties will collaborate to as soon as possible identify new members for
the Board of Directors of Diamyd Medical AB. Anders Essen-Möller will be
proposed as a member of the Board. The agreement entails the following:
1. The shares in the subsidiary Diamyd Therapeutics AB where the current
activities within diabetes have been gathered will be distributed to the
shareholders. That company will be capitalized with SEK 50 million. That
company will have series A and series B shares in the same manner as Diamyd
Medical AB has today. Anders Essen-Möller will be proposed to become the
Chairman of the Board. The intention is that this company will be listed.
2. Following the distribution of Diamyd Therapeutics AB, all series A shares
in Diamyd Medical AB will immediately be converted to series B shares. Anders
Essen-Möller who is the only holder of series A shares has committed to
convert his series A shares to series B shares. Remaining in Diamyd Medical AB
will be the rest of the liquid assets amounting to approximately SEK 300
million, and the holdings in Protein Sciences Corporation and Mercodia AB.
3. The greater part of the liquid assets in Diamyd Medical AB are proposed to
be distributed to the shareholders as soon as possible. Some cash will be set
aside to be used to manage the other remaining assets until the value of those
assets can be realized and distributed to the shareholders.
About Diamyd Medical
Diamyd Medical was founded in 1996 and is active in the field of
pharmaceutical development. Diamyd Medical is headquartered in Stockholm,
Sweden. The Company’s development project consists of the protein GAD for the
treatment and prevention of autoimmune diabetes. Two Swedish
researcher-initiated Phase II studies are ongoing. One study evaluates whether
GAD can prevent type 1 diabetes in children who are at high risk of developing
the disease and one study evaluates whether GAD in combination with relatively
high doses of vitamin D and ibuprofen can preserve the body's own ability to
control the blood sugar level in children and adolescents newly diagnosed with
type 1 diabetes.
Diamyd Medical also has holdings in the gene therapy company Periphagen
Holdings, Inc. (USA), the vaccine company Protein Sciences Corporation (USA)
and the diagnostics company Mercodia AB (Sweden).
Diamyd shares are listed on Nasdaq OMX (segment Small Cap) in Stockholm
(ticker: DIAM B) and on OTCQX in the US (ticker: DMYDY) administered by the
Pink OTC Markets and the Bank of New York Mellon (PAL). Further information is
available on the Company’s website: www.diamyd.com.
This information is disclosed in accordance with the Swedish Securities
Markets Act, the Swedish Financial Instruments Trading Act, or the
requirements stated in the listing agreements.
Diamyd Medical AB (publ) Karlavägen 108, SE-115 26 Stockholm, Sweden. Phone:
+46 8 661 00 26, Fax: +46 8 661 63 68 E-mail: firstname.lastname@example.org. Reg. no:
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Chairman Diamyd Medical AB
Phone: 070-551 0679.
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