DiaMedica Shares Soar 11.96% on $30.1M Funding

Diamedica(DMAC) shares surged 11.96% today, marking the fourth consecutive day of gains, with a cumulative increase of 31.04% over the past four days. The stock price reached its highest level since March 2025, with an intraday gain of 14.13%.

The strategy of buying DMAC shares after they reach a recent high and selling them one week later delivered strong returns over the past five years. The strategy achieved an overall return of 179.19%, significantly outperforming the benchmark return of 59.24%. The excess return generated was 119.95%, indicating the strategy's ability to capitalize on short-term price movements. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.73, the strategy also showcased robust risk management, maintaining a steady upward trajectory despite high volatility.

DiaMedica Therapeutics Inc. recently completed a $30.1 million private placement of common shares, led by existing investors. This funding is aimed at accelerating the development of DM199, the company's lead candidate for treating preeclampsia and fetal growth restriction. The proceeds are expected to support the company's operations for over two years, enabling key strategic milestones such as the submission of an investigational new drug application in the United States and the initiation of a Phase 2b study. This financial boost is anticipated to enhance DiaMedica's efforts in addressing these critical maternal-fetal conditions, which currently lack approved therapeutic options. The successful fundraising could significantly bolster investor confidence in the company's future prospects and clinical advancements, potentially driving further stock price appreciation.