Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN) announced that it will COMMENCE a 1-for-50 reverse stock split of its common stock. The reverse stock split will take effect at 5:59 p.m. Eastern Time on April 18, 2022, and the Company's common stock will begin trading on the Nasdaq Capital Market on a post-split basis at the market's opening on April 19, 2022, subject to confirmation by the Depository Trust Company and Nasdaq.
The reverse stock split, which was accepted by the Company's stockholders at a special meeting earlier today, is expected to raise the price per share of the Company's common stock and is part of Diffusion's strategy to regain compliance with the Nasdaq Capital Market's $1.00 minimum bid price requirement.
Furthermore, the common stock will continue to trade under the Business's existing trading symbol, "DFFN," and the new CUSIP number for the common shares after the reverse stock split will be 253748 404, according to the company. Every fifty (50) shares of Diffusion's issued and outstanding common stock will be automatically converted into one (1) issued and outstanding share of common stock at the effective time of the reverse stock split, with no change in the par value of $0.001 per share or the total number of authorized shares.
The Company's outstanding common stock will be reduced from roughly 102 million to roughly 2 million shares as a result of the reverse stock split. In connection with the reverse stock split, no fractional shares of common stock will be issued, and investors who would otherwise be entitled to a fractional share would receive a cash payout instead.