The Diffusion Pharmaceuticals (NASDAQ: DFFN) stock emerged as one of the notable gainers in the pharmaceutical sector on Tuesday after the company made a major announcement.
The stock soared by as high as 10% after the company announced that its underwriter exercised the option in full to purchase more shares in the Diffusion common stock. It goes without saying that it is a significant development since it signifies confidence in the prospects of the company.
The underwriter had been involved in the public offering of its common stock that had been announced previously. As per the announcement from Diffusion, the underwriter decided to exercise its option to pick up 4,390,244 shares in the company’s common stock for $1.025 each. The transaction resulted in Diffusion generating gross proceeds of as big as $34.5 million. The underwriter in question was H.C. Wainwright & Co. The company aims to use fresh capital towards the development of its lead candidate.
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