Benzinga | Feb 12, 2021 06:03AM EST

Diffusion Pharmaceuticals Increases Previously Announced Bought Deal Offering to 29.26M Shares of Common Stock @$1.025/Share

Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN) announced that, due to demand, the underwriter has agreed to increase the size of the previously announced public offering and purchase on a firm commitment basis 29,268,294 shares of common stock of the Company at a price to the public of $1.025 per share, less underwriting discounts and commissions. The closing of the offering is expected to occur on or about February 17, 2021, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The Company also has granted to the underwriter a 30-day option to purchase up to an additional 4,390,244 shares of common stock at the public offering price, less underwriting discounts and commission.

The gross proceeds of the offering are expected to be approximately $30,000,000, before deducting underwriting discounts and commissions and offering expenses payable by Diffusion and assuming no exercise of the option to purchase additional shares. Diffusion intends to use the net proceeds of the offering to fund research and development of our lead product candidate, TSC, including the TCOM Study, the DLCO Study, and other clinical trial activities, and for general corporate purposes.