Shareholders in Diamyd Medical AB 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.
The shares in the subsidiary Diamyd Therapeutics AB shall be distributed to the shareholders and 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 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.
“We have agreed on a solution that benefits all shareholders and our staff without slowing down the development of our diabetes vaccine. Now we look ahead to continue our work to find a long term solution for all that are afflicted by diabetes,” said Anders Essen-Möller in a press release.
Headquartered in Stockholm, Sweden, Diamyd Medical was founded in 1996 and is active in the field of pharmaceutical development. The development project consists of the protein GAD for the treatment and prevention of autoimmune diabetes, also two Swedish researcher-initiated Phase II studies are ongoing.