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DiaMedica Announces Inducement Grants Under Nasdaq Listing Rule 5635(C)(4)

MWN-AI** Summary

DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage biopharmaceutical company focused on innovative treatments for conditions such as preeclampsia, fetal growth restriction, and acute ischemic stroke, has announced an inducement grant of stock options to five newly hired non-executive employees. As disclosed on September 18, 2025, DiaMedica has granted stock options to acquire a total of 490,000 shares of its common stock, with the employment of these individuals commencing in August and September 2025.

The stock options were authorized by the Compensation Committee of DiaMedica's Board of Directors under the Amended and Restated 2021 Employment Inducement Incentive Plan. Each option features an exercise price of $6.76 per share, reflecting the closing price of the company’s stock on the date of the grant. The options are structured to vest cumulatively, with 25% vesting on the one-year anniversary of the grant date, followed by the remaining 75% vesting in quarterly increments over the subsequent three years, contingent upon the continued employment of the recipients. These options are valid for a ten-year period.

This incentive was a crucial element of the new employees’ compensation as per Nasdaq Listing Rule 5635(c)(4), aimed at attracting talented individuals to join DiaMedica. The company is notably advancing its lead candidate, DM199, which represents a synthetic recombinant form of the KLK1 protein and is under investigation in the United States for treating acute ischemic stroke and other vascular-related diseases.

For further information about DiaMedica and its developments, interested individuals can visit their official website at www.diamedica.com.

MWN-AI** Analysis

DiaMedica Therapeutics Inc. (Nasdaq: DMAC) recently made headlines by granting stock options to 490,000 shares to five newly appointed non-executive employees. This strategic move, as part of their Amended and Restated 2021 Employment Inducement Incentive Plan, underscores DiaMedica's commitment to attracting and retaining key talent, particularly as it advances its promising lead candidate, DM199.

The exercise price of $6.76 per share mirrors the closing price on the day of the grant, ensuring that the options are fairly valued for the recipients. The structured vesting schedule—25% after one year and the remainder in quarterly installments over three years—aligns employee incentives with company performance, promoting long-term commitment and engagement.

From an investor’s perspective, this move can be seen as a positive indicator of the company's growth strategy and ambition. At this stage of development, attracting high-caliber personnel is crucial for pushing forward clinical programs and ultimately advancing commercialization efforts of DM199 and other therapies. DM199, being developed for acute ischemic stroke, brings unique potential given its status as the first synthetic form of the KLK1 protein in the U.S., a modality already established in China.

However, while these inducement grants are a strategic effort to strengthen the team, potential investors should remain cautious. Phase II clinical trials, regulatory approvals, and market acceptance will be critical in determining the stock's trajectory. With a ten-year option term, the company has set a long-term foundation for talent retention which, if successful, could yield significant value.

Ultimately, investors should consider holding shares in DiaMedica as it gets closer to clinical milestones while keeping a vigilant eye on market dynamics and trial outcomes. The overall market sentiment regarding biopharmaceutical innovations targeted at critical conditions like stroke could also sway the company's valuation, suggesting potential for both growth and volatility.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: Business Wire

DiaMedica Therapeutics Inc. (Nasdaq: DMAC), a clinical-stage biopharmaceutical company focused on developing novel treatments for preeclampsia, fetal growth restriction and acute ischemic stroke, today announced that on September 18, 2025, it granted stock options to purchase an aggregate of 490,000 shares of DiaMedica’s common stock to five newly hired non-executive employees whose employment commenced in August and September 2025.

The stock options were approved by the Compensation Committee of the Board of Directors under the DiaMedica Therapeutics, Inc. Amended and Restated 2021 Employment Inducement Incentive Plan. The options have an exercise price of $6.76 per share, which is equal to the closing price of the Company’s common stock on September 18, 2025, and vest and become exercisable, on a cumulative basis, with respect to 25% of such underlying shares on the one-year anniversary of the grant date and with respect to the remaining 75% of such underlying shares in 12 quarterly installments commencing three months after the one-year anniversary of the grant date, subject to each individual’s continued employment or service with the Company. The options have a ten year term.

The stock options were a material inducement to each employee’s acceptance of employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of their compensation.

About DiaMedica Therapeutics Inc.

DiaMedica Therapeutics Inc. is a clinical stage biopharmaceutical company committed to improving the lives of people suffering from serious diseases with a focus on acute ischemic stroke. DiaMedica’s lead candidate DM199 is the first pharmaceutically active recombinant (synthetic) form of the KLK1 protein, an established therapeutic modality in China for the treatment of acute ischemic stroke and other vascular diseases, to be clinically studied in the United States. For more information visit the Company’s website at www.diamedica.com .

View source version on businesswire.com: https://www.businesswire.com/news/home/20250929761357/en/

Corporate Contact:
Scott Kellen, Chief Financial Officer
(763) 496-5118 | skellen@diamedica.com

Investor Contact:
Mike Moyer, Managing Director, LifeSci Advisors
mmoyer@lifesciadvisors.com

Media Contact:
Madelin Hawtin, LifeSci Communications
mhawtin@lifescicomms.com

FAQ**

What specific milestones does DiaMedica Therapeutics Inc. (DMAC) aim to achieve with the development of its lead candidate DM199 for acute ischemic stroke in the upcoming clinical trials?

DiaMedica Therapeutics Inc. (DMAC) aims to achieve specific milestones in its upcoming clinical trials for DM199, including demonstrating safety and efficacy, improving patient outcomes in acute ischemic stroke, and advancing to pivotal trials for regulatory approval.

How do the stock options granted on September 18, 2025, to new employees impact the overall financial strategy of DiaMedica Therapeutics Inc. (DMAC) as it continues to advance its pipeline?

The stock options granted to new employees on September 18, 2025, incentivize talent retention and performance, align employee interests with shareholder value, and support DiaMedica Therapeutics Inc.'s strategic focus on advancing its pipeline while managing cash flow.

Can you elaborate on how the employment inducement stock options align with the long-term goals of DiaMedica Therapeutics Inc. (DMAC) in addressing preeclampsia and fetal growth restriction?

The employment inducement stock options align with DiaMedica Therapeutics Inc.'s long-term goals by incentivizing key personnel to drive innovation and research in developing treatments for preeclampsia and fetal growth restriction, ultimately enhancing patient outcomes and shareholder value.

What implications do the vesting terms of the stock options granted to DiaMedica Therapeutics Inc. (DMAC) employees have on employee retention and company culture within the biopharmaceutical sector?

The vesting terms of stock options at DiaMedica Therapeutics Inc. play a crucial role in enhancing employee retention and fostering a positive company culture in the biopharmaceutical sector by aligning employee interests with company performance over time.

**MWN-AI FAQ is based on asking OpenAI questions about DiaMedica Therapeutics Inc. (NASDAQ: DMAC).

DiaMedica Therapeutics Inc.

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