|[February 18, 2013]
Diamyd Medical: Diamyd's major shareholders reach agreement
STOCKHOLM --(Business Wire)--
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agreement that request will be withdrawn and the Extraordinary General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
1. The shares in the subsdiary 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
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 (News - Alert): +46 8 661 00 26, Fax: +46 8 661 63 68 E-mail: email@example.com.
Reg. no: 556530-1420
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