An Extraordinary General Meeting of Diamyd Medical on April 19, 2017 resolved to approve the Board's decision to issue new shares with preferential rights for shareholders, and in the case of oversubscription, over-allotment through a separate, directed issue without preferential rights. The rights issue comprised a maximum of 19 661 707 units, of which 852 074 with series A shares and 18 809663 with series B shares and the over-allotment of a maximum of 5 714 286 units of series B shares, all units consisting of one share and one warrant at a price of SEK 3.50. Subscriptions of units with and without preferential rights were made from May 10 to May 24, 2017. In addition, compensation to underwriters and financial advisors amounted to a total of 1 465 357 units.

In total, in addition to compensation to underwriters and financial advisor, 25 375 993 units were subscribed for, of which 18 271 908 with preferential rights (through subscription rights) and 7 104 085 without preferential rights. The rights issue was subscribed to approximately 129 percent. Subscription from the current underwriting consortium was therefore not required. G&W Fondkommission has acted as financial adviser in connection with the issue.

As soon as the share capital increase has been registered with the Swedish Companies Registration Office (Bolagsverket), paid subscribed units (BTU) in the rights issue will be converted into new shares. Until then, BTU will be traded on Nasdaq First North. Trading in new shares is expected to commence on Nasdaq First North around June 19, 2017. Following registration of the rights issue, including issued units to underwriters and financial advisors, Diamyd Medical's share capital will amount to a total of 5 713 545.96 SEK divided among 2 130 186 series A shares and 54 203 726 series B shares, with a quota value of (rounded) 0.1014 SEK. Slight adjustments in the above number of shares and amounts may occur.

About Diamyd Medical
Diamyd Medical is dedicated to finding a cure for diabetes and other serious inflammatory diseases through pharmaceutical development and investments in stem cell and medical technology.

Diamyd Medical develops the diabetes vaccine Diamyd^®, for antigen-specific immunotherapy based on the exclusively licensed GAD-molecule. Five clinical studies are ongoing with Diamyd^®. The Company's trial DIAGNODE-2, where the diabetes vaccine is administered directly into the lymphatic node, is expected to start recruiting patients in the fall. GABA constitutes alongside with the diabetes vaccine a key asset in Diamyd Medical and the Company uses its GABA in-licensed technology to develop a proprietary GABA drug product. Diamyd Medical is one of the major shareholders in the stem cell company NextCell Pharma AB. Diamyd Medical also has holdings in the medtech company Companion Medical, Inc., San Diego, USA and in the gene therapy company Periphagen, Inc., Pittsburgh, USA.

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

For further information, please contact:
Ulf Hannelius, President and CEO
Phone: +46 736 35 42 41
E-mail: ulf.hannelius@diamyd.com

Diamyd Medical AB (publ)
Kungsgatan 29, SE-111 56 Stockholm, Sweden. Phone: +46 8 661 00 26, Fax: +46 8 661 63 68
E-mail: info@diamyd.com. Reg. no.: 556242-3797. Website: www.diamyd.com.

This information is information that Diamyd Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation. This is an English translation of information that was submitted for publication, through the agency of the contact person set out above, at 14:15 CET on May 30, 2017.