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Diffusion Pharmaceuticals Announces 1-for-15 Reverse Stock Split As Part Of NASDAQ Compliance Plan
CHARLOTTESVILLE, Va., Dec. 13, 2018 (GLOBE NEWSWIRE) -- Diffusion Pharmaceuticals Inc. (Nasdaq: DFFN), a cutting-edge biotechnology company developing new treatments for life-threatening medical conditions by improving the body’s ability to bring oxygen to the areas where it’s needed most, today announced a reverse stock split of its shares of common stock at a ratio of 1-for-15, effective for trading purposes prior to the opening of the market on December 14, 2018. The Company’s ticker symbol, DFFN, will remain unchanged. The new CUSIP number for Diffusion’s post-reverse split common stock will be 253748 305.
The Company’s stockholders approved the reverse stock split on June 14, 2018 and the Company’s Board of Directors the reverse stock split ratio on November 30, 2018. At the effective time of the reverse stock split, every 15 shares of Diffusion issued and outstanding common stock were automatically combined and converted into 1 issued and outstanding share of common stock without any change in the par value of the shares. This has reduced the number of outstanding shares of common stock from approximately 50.6 million to approximately 3.4 million. Diffusion expects that the reverse stock split will increase the market price per share of its common stock to allow the Company to maintain the listing of its common stock on the NASDAQ Capital Market.
“As we work to fight life-threatening medical conditions, our Company’s leadership remains focused on providing value to shareholders. Retaining our NASDAQ listing is an important part of our Company’s strategy,” said David Kalergis, Chairman and CEO of Diffusion. “With this reverse stock split, we expect to remain listed on the NASDAQ Capital Market for the foreseeable future and will continue to pursue the innovative solutions which we believe will have a significant impact on deadly diseases such as cancer and stroke.”
Diffusion’s reverse stock split follows recent Company news which included the FDA’s approval of a Phase 2 on-ambulance clinical trial for the use of the Company’s lead drug, Trans Sodium Crocetinate (TSC), for the treatment of acute stroke and the appointment of a new Chief Financial Officer.
About Diffusion Pharmaceuticals Inc.
Diffusion Pharmaceuticals Inc. is an innovative biotechnology company developing new treatments that improve the body’s ability to bring oxygen to the areas where it’s needed most —offering new hope for the treatment of life-threatening medical conditions.
Diffusion’s lead drug, Trans Sodium Crocetinate (TSC), was originally developed in conjunction with the Office of Naval Research, which was seeking a way to treat hemorrhagic shock caused by massive blood loss on the battlefield.
Evolutions in research have led to Diffusion’s focus today: Fueling Life by taking on some of medicine’s most intractable and difficult-to-treat diseases, including stroke and GBM brain cancer. In each of these diseases, hypoxia – when essential tissue in your body is deprived of oxygen – has proved to be a significant obstacle for medical providers and the target for TSC’s novel mechanism.
In 2018, the Company began enrolling patients in its Phase 3 INTACT program, using TSC to target inoperable GBM brain cancer. Its on-ambulance Phase 2 acute stroke protocol was granted FDA clearance to proceed in September 2018. Additional pre-clinical data supports the potential use of TSC as a treatment for other conditions where hypoxia plays a major role, such as myocardial infarction, respiratory diseases such as COPD, peripheral artery disease, and neurodegenerative conditions such as Alzheimer’s and Parkinson’s.
In addition, RES-529, the Company’s PI3K/AKT/mTOR pathway inhibitor that dissociates the mTORC1 and mTORC2 complexes, is in the preclinical testing phase for GBM.
Diffusion is headquartered in Charlottesville, Virginia—an emerging hub of advancement in the life science and biopharmaceutical industries and is led by CEO David Kalergis, a 30-year industry veteran and company co-founder.
To the extent any statements made in this news release deal with information that is not historical, these are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the company's plans, objectives, expectations and intentions with respect to future operations and products, the potential of the company's technology and product candidates, the anticipated timing of future clinical trials, and other statements that are not historical in nature, particularly those that utilize terminology such as "would," "will," "plans," "possibility," "potential," "future," "expects," "anticipates," "believes," "intends," "continue," "expects," other words of similar meaning, derivations of such words and the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause the company's actual results to be materially different than those expressed in or implied by such forward-looking statements. Particular uncertainties and risks include: general business and economic conditions; the company's need for and ability to obtain additional financing or partnering arrangement; the difficulty of developing pharmaceutical products, obtaining regulatory and other approvals and achieving market acceptance; and the various risk factors (many of which are beyond Diffusion’s control) as described under the heading “Risk Factors” in Diffusion’s filings with the United States Securities and Exchange Commission. All forward-looking statements in this news release speak only as of the date of this news release and are based on management's current beliefs and expectations. Diffusion undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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