WINNIPEG, Manitoba – DiaMedica Inc. (TSX-V:DMA), a clinical stage biotechnology company developing novel treatments for various stages of type 2 diabetes, is pleased to announce that it has successfully completed its initial public offering of common shares. DiaMedica’s shares will begin trading on the TSX Venture Exchange today under the symbol “DMA”.

Due to high demand, the offer was increased to accommodate a portion of the additional volume. The initial distribution, intended to be a minimum of 3,000,000 and a maximum of 5,000,000 shares, was increased to 5,500,000 shares at a price of $1.00 per share.

The Company intends to use the net proceeds of the offering, expected to be approximately $5.0 million, for research and development, general and administrative expenses, as well as to fund the costs associated with additional clinical trials for its pipeline of products. Enrollment is well underway in a phase IIa clinical trial for the Company’s lead product, DM-71.

“We have reached another important milestone in the Company’s development”, stated Dr. Karl-Gunnar Hidinger, President of DiaMedica Inc. “We will now have the resources to continue development of DM-71, as well as initiate one or more phase II trials for other products in our development pipeline.”

Dundee Securities Corporation and Research Capital Corporation were the underwriters of the offering. In connection with the offering, the agents received broker warrants exercisable in an amount equal to 4% of the number of common shares sold under the offering, as well as 9% of the gross proceeds from the offering in cash compensation.