The Directed New Issue
The Board of Directors has decided on the Directed New Issue based on the authorization of the Annual General Meeting on December 5, 2024.

The Directed New Issue comprises 5,200,000 B shares and 5,200,000 warrants of series TO 5 B and has been subscribed for by the Edlund family (18.5 MSEK), Venture S.A.R.L. (10 MSEK), Fredrik Lundgren, privately and through a company (5 MSEK), Peter Alarik, through a company (2.5 MSEK), Johan Salén (2.5 MSEK), Ehsan Ashrafi (1.6 MSEK), Bertil Lindkvist (1 MSEK) and Mikael Lönn (0.5 MSEK). Of the subscribers, only Bertil Lindkvist was a shareholder in the Company before the Rights Issue.

Through the Directed New Issue, the number of shares in the Company will increase by 5,200,000 and the share capital by approximately SEK 527,390.55.

After registration of the Rights Issue and the Directed New Issue, the number of shares in Diamyd Medical will amount to 137,299,723, of which 3,378,120 are A-shares and 133,921,603 are B shares. The share capital will amount to, rounded, SEK 13,925,110.87.

The dilution for existing shareholders through the Directed New Issue amounts to 3.79 percent of the share capital in the Company calculated as the number of shares in the Directed New Issue divided by the number of shares in Diamyd Medical after the Directed New Issue.

The issue costs in the Directed New Issue are estimated to amount to approximately SEK 2.1 million.

The Board of Directors' considerations
The Directed New Issue has been carried out on the same terms as the Rights Issue, i.e. SEK 8.00 for a B share and a warrant of series TO 5 B. The price corresponds to a discount of approximately 24.5 percent on the closing price of Diamyd Medical's BTU on May 2, 2025 and a discount of approximately 21.6 percent on the volume-weighted average price (VWAP) on Nasdaq First North Growth Market during the three trading days on which Diamyd Medical's BTU has been traded.

The volume-weighted average price of Diamyd Medical's B share in the ten trading days prior to the Directed New Issue was SEK 8.53.

The reason for carrying out the Directed New Issue is that it provides Diamyd Medical with additional capital in a time- and cost-effective manner in a strained financial climate that is particularly noticeable for smaller companies, something that Diamyd Medical has previously experienced. A company like Diamyd Medical must seize the opportunity and raise capital when the opportunity arises, since the capital market may suddenly be closed. The Directed New Issue provides the Company with several qualified private investors as new shareholders. This strengthens Diamyd Medical's ownership base, which is of great importance considering that Diamyd has carried out four large rights issues within two years with a relatively low subscription rate in the three previous issues. Diamyd Medical has nevertheless been able to operate its operations according to plan but with slim resources. The additional capital contribution through the Directed New Issue is therefore particularly valuable. It gives Diamyd breathing space and the opportunity to make investments in business development that were previously postponed and to intensify preparations for the upcoming Phase 3 readout. It also gives Diamyd Medical an increased “war chest” for upcoming partner discussions. In summary, the Board of Directors assesses that the Directed New Share Issue is positive for the Company’s shareholders and that it was carried out on market terms.

About Diamyd MedicalDiamyd Medical develops precision medicine therapies to prevent and treat Type 1 Diabetes. Diamyd^® is an investigational antigen-specific immunomodulatory therapeutic for the preservation of endogenous insulin production specifically for individuals carrying a HLA DR3-DQ2 gene. Diamyd^® has been granted Orphan Drug Designation in the U.S. as well as Fast Track Designation by the U.S. FDA for the treatment of Stage 3 (clinically diagnosed symptomatic) Type 1 Diabetes. Diamyd^® has also been granted Fast Track Designation for the treatment of Stage 1 and 2 (pre-symptomatic) Type 1 Diabetes. DIAGNODE-3, a confirmatory Phase III trial is actively recruiting patients with recent-onset (Stage 3) Type 1 Diabetes at 60 clinics in eight European countries and in the US. An early read-out of the Phase 3 trial is expected in March 2026. Significant results in preserving endogenous insulin production have previously been shown in a large genetically predefined patient group – both in a largescale meta-analysis as well as in the Company’s prospective European Phase IIb trial. The DIAGNODE-3 trial is recruiting only this patient group that carries the common genotype known as HLA DR3-DQ2, which constitutes approximately 40 % of patients with Type 1 Diabetes in Europe and the US. A biomanufacturing facility is under development in Umeå, Sweden, for the manufacture of recombinant GAD65 protein, the active ingredient in the antigen-specific immunotherapy Diamyd^®. Diamyd Medical is a major shareholder in the stem cell company NextCell Pharma AB and 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.

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

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: https://www.diamyd.com

Publication
This information is information that Diamyd Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.45 CET on May 5, 2025.

Important information
This press release is not and does not form a part of any offer for sale of securities. Copies of this communication may not be made in, and may not be distributed or sent into, the United States, Australia, Canada, Japan, South Africa, New Zealand, Hong Kong, Singapore or any other jurisdiction in which distribution of this press release would be unlawful or would require registration or other measures. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States and, accordingly, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with applicable state securities law. The Company does not intend to register any part of the share issue in the United States or to conduct a public offering of shares in the United States.

The securities referred to herein have not been and will not be registered under the applicable securities laws of Canada, Japan, Australia, South Africa, New Zealand, Hong Kong or Singapore and, subject to certain exemptions, may not be offered or sold in or into or for the account or benefit of any person having a registered address in, or located or resident in, Canada, Japan, Australia, South Africa, New Zealand, Hong Kong or Singapore. There will be no public offering of the securities described herein in Canada, Japan, Australia, South Africa, New Zealand, Hong Kong or Singapore.

This press release is not a prospectus for purposes of Prospectus Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 and its delegated and implemented regulations (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. The Company has not authorized any offer to the public of securities in any EEA Member State and no prospectus has been or will be prepared in connection with the Directed New Issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.

Any investment decision in connection with the Directed New Issue must be made on the basis of all publicly available information relating to the Company and the issued shares. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. This announcement does not purport to identify or suggest the risks (direct or indirect) which may be associated with an investment in the Company or the new shares.

Forward-looking information
This press release contains certain forward-looking information that reflects the Company’s present view of future events as well as financial and operational development. Words such as “intend”, “assess”, “expect”, “may”, “plan”, “believe”, “estimate” and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties as it depends on future events and circumstances. Forward-looking information is not a guarantee of future results or development and actual outcomes may differ materially from the statements set forth in the forward-looking information.