Diamyd Medical has announced that the company has increased its investment in the associated company Cellaviva with an additional SEK 1.3 million.
The investment is made within the framework of a convertible loan of SEK 2.7 million, mainly directed at existing shareholders. The convertible loan will, among others, be used to finance Cellaviva’s development of existing service offerings to include saving of stem cells from umbilical cord and for the establishment of Cellaviva’s research bank.
“With this investment Diamyd Medical strengthens its commitment in the stem cell area,” says Ulf Hannelius, President and CEO of Diamyd Medical. “We envisage there is continuing progress made within research that may be significant for future use of stem cells in the treatment of diseases like type 1 diabetes.”
Diamyd Medical is presently the largest shareholder in Cellaviva, Sweden’s first biobank for family saving and research on stem cells from the umbilical cord. If fully converted, the convertible loan would increase Diamyd Medical’s shareholding in Cellaviva marginally from about 44.5 % to about 45 %.