DiaMedica Inc. (the "Company") is pleased to announce that it has closed the first tranche of a non-brokered private placement previously announced on July 17, 2016. The first tranche was an investment of USD$1.0 million by Hermed Capital Healthcare Fund ("Hermed") for 5 million common shares of the Company at USD$0.20 per share. The second tranche, which will be an investment of USD$3.0 million by Hermed for 15 million common shares of the Company at USD$0.20 per share, is expected to close in the next few weeks.