CHARLOTTESVILLE, Va., Aug. 15, 2023 (GLOBE NEWSWIRE) — Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN) today announced that its stockholders have voted to approve all proposals at a special meeting of stockholders held earlier today, including the issuance of Diffusion Common Stock in the pending merger with EIP Pharma Inc., and a reverse stock split of outstanding Diffusion Common Stock.
Dr. Robert Cobuzzi, President and Chief Executive Officer of Diffusion, said, “We are pleased with the outcome of today’s special meeting and thank our stockholders for their support of the merger with EIP. The fact that stockholders holding more than 71% of the votes cast voted in favor of the transaction, and 73% of the votes cast voted in favor of the Reverse Split provides further confidence that our thorough strategic process maximizes value for stockholders.”
“We look forward to completing the merger and realizing our bright future as CervoMed. Looking ahead, we believe our stockholders are positioned to benefit from the upside potential of ownership in the combined company, where the team will be building on the great work the EIP team has done in developing neflamapimod, including yesterday’s announcement that the first patient has been dosed in the RewinD-LB Phase 2b clinical trial of the company’s lead asset, neflamapimod, for the treatment of patients with dementia with Lewy bodies (DLB).”
In connection with the special meeting, Diffusion’s board of directors met and voted to implement the lowest Reverse Split ratio, 1-for-1.5, to maintain compliance with the $4 per share minimum bid price requirement for an initial listing on any Nasdaq market tier. As such, pending completion of the merger, the combined company’s common stock is expected to begin trading on a split-adjusted basis when the market opens on August 17, 2023, under the new trading symbol “CRVO.” As a result of the reverse stock split and the merger, the CUSIP number for Diffusion’s common stock will now be 15713L109.
The merger is expected to close after the close of business close on August 16, 2023, subject to customary closing conditions. The final voting results for the company’s special meeting will be disclosed in a Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and will also be available at https:// https://investors.diffusionpharma.com/sec-filings/, after certification by the company’s inspector of elections.
Canaccord Genuity is serving as financial advisor to Diffusion, and Dechert LLP is serving as legal counsel to Diffusion.
About Diffusion Pharmaceuticals Inc.
Diffusion Pharmaceuticals Inc. is a biopharmaceutical company that has historically focused on developing novel therapies that may enhance the body’s ability to deliver oxygen to areas where it is needed most. Diffusion’s most advanced product candidate, trans sodium crocetinate (TSC), has been investigated and developed to enhance the diffusion of oxygen to tissues with low oxygen levels, also known as hypoxia, most recently as an adjuvant treatment to standard of care therapy for GBM and other hypoxic solid tumors. In connection with the proposed merger with EIP, and pending its conclusion, Diffusion previously paused the initiation of the previously announced Phase 2 study of TSC in newly diagnosed GBM patients and will continue to attempt to identify sale or out-licensing transactions.
For more information, please visit www.diffusionpharma.com or engage with us on Twitter and LinkedIn.
