LifeSci Special Opportunities Responded to Recent Press Release Issued by Diffusion Pharmaceuticals

Author: Charles Gross | November 17, 2022 06:21pm
LifeSci Special Opportunities Master Fund Ltd. ("LifeSci Special Opportunities" or "we"), the holder of 96,976 shares of common stock of Diffusion Pharmaceuticals Inc. ("Diffusion" or the "Company") (NASDAQ:DFFN), or approximately 4.8% of the Company's outstanding shares, today issued a statement in response to the Company's misleading press release from November 14, 2022 and announced that it has nominated a slate of high quality director candidates for election at the Company's upcoming annual meeting to be held on December 30, 2022 (the "2022 Annual Meeting"). LifeSci Special Opportunities Statement "The Company's November 14, 2022 press release announcing that its board of directors (the "Board") has authorized a review and evaluation of potential strategic opportunities appears to have been deliberately timed in order to obscure prior attempts by third parties, including LifeSci Capital LLC ("LS Capital"), a commonly-owned affiliate of LifeSci Special Opportunities, acting on behalf of its clients, to engage the Board in discussions regarding potential strategic alternatives. The Company's press release endeavors to mislead stockholders regarding the facts as to LS Capital's efforts to constructively engage with the Company on possible pathways to unlock significant value for all of the Company's stockholders. Further, the announcement of the strategic review process appears to be a desperate and thinly veiled effort to distract stockholders and the market from the Company's failures, including the Board's and management's inability to develop their lead asset, Trans Sodium Crocetinate (TSC), and the catastrophic erosion of Diffusion's cash balances and stockholder value that has occurred under their leadership. We believe that stockholders will be able to see through these transparent attempts to deflect attention away from the Company's operational and share price underperformance, including the fact that the Company's share price has declined by approximately 78% from November 15, 2021 to November 11, 2022.1 We encourage stockholders to review our proxy materials as they become available, which will include additional information regarding our concerns with the Company."

Posted In: DFFN