Diffusion Pharmaceuticals, a CvilleBioHub member, recently announced the closing of its registered direct offering of $6.45 million, priced at-the-market, with institutional investors of over a million shares of company common stock, priced $4.77 per share. In addition, the biotech company issued 1,317,060 unregistered warrants to the institutional investors in a concurrent private placement to purchase one share of common stock for each share of common stock purchased with an exercise price of five dollars per share for aggregate gross proceeds of ~$165 thousand. These warrants are exercisable upon issuance and will expire five and a half years following their dates of issuance. The exclusive placement agent in connection with the offering is H.C. Wainwright & Co.
The funding, according to Diffusion, will stimulate research and development of their lead product candidate, TSC, including clinical trial activities, and for general corporate purposes.
For more information, view the original press release by Diffusion Pharmaceuticals here.
About Diffusion Pharmaceuticals- Diffusion Pharmaceuticals is a clinical stage company focused on improving the effectiveness of standard-of-care therapies for life-threatening treatment-resistant solid cancerous tumors, without adding harmful side effects.
The company is developing its lead drug, trans sodium crocetinate (TSC), which has received Orphan Drug Designation from the FDA for use in a number of cancers in which tumor hypoxia (oxygen deprivation) diminishes the efficacy of current treatments. TSC targets the cancer’s hypoxic micro-environment, re-oxygenating treatment-resistant tissue and making the cancerous cells more vulnerable to the therapeutic effects of conventional radiation and chemotherapy.