DiaMedica Closes Public Offering in the United States

DiaMedica Therapeutics Inc. (“

DiaMedica

” or the “

Company

”) (NASDAQ:DMAC; TSXV:DMA), a clinical stage biopharmaceutical company, announced today that it has completed an underwritten initial public offering in the United States (the “

Offering

”) of 4.1 million voting common shares, no par value, of the Company (“

Shares

”), at a price to the public of USD$4.00 per Share. All of the Shares were issued and sold by the Company. The Shares were registered for sale pursuant to a Registration Statement on Form S-1 (Registration No. 333-228313), filed with the United States Securities and Exchange Commission and declared effective on December 6, 2018.

On December 6, 2018, in connection with the pricing of the Offering, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Craig-Hallum Capital Group LLC, the sole managing underwriter of the Offering (the “Underwriter”), pursuant to which the Company agreed to issue and sell the Shares to the Underwriter at a purchase price of USD$3.74 per Share and the Underwriter agreed to offer the Shares to the public at an initial public offering price of USD$4.00. The Company also agreed to sell and issue to the Underwriter for a price of USD$50 a warrant to purchase Shares equal to 5.0% of the Shares sold in the offering at an exercise price that is 120% of the initial public offering price per share in the Offering. Accordingly, the Company issued the Underwriter a warrant to purchase 205,000 Shares at an exercise price of USD$4.80 per Share. The warrant is exercisable immediately and expires on December 6, 2023.

About DiaMedica

DiaMedica is a clinical stage biopharmaceutical company focused on developing novel treatments for neurological and kidney diseases. DiaMedica’s shares are listed on TSX Venture Exchange under the trading symbol “DMA” and on The Nasdaq Capital Market under the trading symbol “DMAC.”

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

For further information:

Paul Papi Vice President of Business Development 2 Carlson Parkway, Suite 260 Minneapolis, MN  55447 [phone] [e-mail]