Diamyd Medical

Background
On May 24, Diamyd Medical announced a decision on a new share issue. As reported in the press release, it was Diamyd Medical's intention that the subscribers to the new issue (the holders of BTA) would, in addition to shares, also receive warrants free of charge. As the Board of Directors' issue authorization at the time of the decision did not include the issue of warrants and as the limits of the articles of association for the share capital and number of outstanding shares needed to be increased, Diamyd Medical convened an extra general meeting to be held on June 26, at which the necessary decisions on the issue of warrants and changes to the articles of association would be made.

However, the intended issue structure could not be implemented, among other things because the registration procedure regarding the prospectus risked being delayed and thus also the intended timeline. The offer in the currently ongoing new share issue therefore, as also appears from the prospectus, only concerns a new issue of shares and does not entail any right to warrants. The prospectus is available on Diamyd Medical's website www.diamyd.com.

Funding in autumn 2023
Diamyd Medical still intends to carry out a financing. As it is not considered optimal to implement a financing during the summer, Diamyd Medical intends to come back with information in August-September. At that time, it is expected that the necessary measures regarding raising the capital limits of the articles of association and authorizing the Board of Directors to decide on the issue of warrants have been taken, see further below.

Ongoing new issue
The Board of Directors of Diamyd Medical has, in accordance with what is reported in the prospectus (page 31), made a commitment not to cancel, revoke or temporarily withdraw the offer to subscribe to the new share issue. Such a commitment is common in issue prospectuses. In light of this commitment, Diamyd Medical considers itself prevented from taking any special measures regarding the ongoing new share issue.

Extraordinary general meeting on 26 June
Diamyd Medical has previously convened an extraordinary general meeting which will take place on June 26. The general meeting will be held regarding the proposal to change the capital limits of the articles of association. The Board of Directors will, however, withdraw the proposal to issue warrants.

New extraordinary general meeting
Diamyd Medical will convene a further extraordinary general meeting which is planned to take place at the end of June/early July. The notice will be published in a separate press release. At this general meeting, proposals for issuance authorization shall be considered, which shall include the right to issue shares as well as warrants.

About Diamyd Medical
Diamyd Medical develops precision medicine therapies for type 1 diabetes. Diamyd^® is an antigen-specific immunotherapy for the preservation of endogenous insulin production. DIAGNODE-3, a confirmatory Phase 3 trial is actively recruiting patients with recent-onset type 1 diabetes in eight European countries and is being prepared to start recruiting patients in the US this summer. Significant results have previously been shown in a large genetically predefined patient group in a large-scale meta-analysis as well as in the Company's European Phase 2b trial DIAGNODE-2, where the Diamyd^® was administered directly into a lymph node in children and young adults with recently diagnosed type 1 diabetes. A biomanufacturing facility is being set up in Umeå for the manufacture of recombinant GAD65, the active ingredient in the antigen-specific immunotherapy Diamyd^®. Diamyd Medical also develops the GABA-based investigational drug Remygen^® as a therapy for regeneration of endogenous insulin production and to improve hormonal response to hypoglycaemia. Diamyd Medical is one of the major shareholders in the stem cell company NextCell Pharma AB as well as in the artificial intelligence company MainlyAI AB.

Diamyd Medical's B-share is traded on Nasdaq First North Growth Market under the ticker DMYD B. FNCA Sweden AB is the Company's Certified Adviser.