CervoMed Inc. (formerly known as Diffusion Pharmaceuticals) announced on August 17 that it closed its previously announced acquisition of EIP Pharma, Inc. The combined company will trade on the Nasdaq Capital Market under the ticker symbol, “CRVO”.
EIP Pharma is a clinical-stage biotechnology company advancing CNS-focused therapeutics to benefit patients with a range of debilitating neurodegenerative diseases. It is currently developing neflamapimod, an investigational orally administered small molecule brain penetrant that inhibits p38MAP kinase alpha (p38a).
CervoMed is a biopharmaceutical company that has historically focused on developing novel therapies that enhance the body’s ability to deliver oxygen to areas where it is needed most.
Canaccord Genuity served as financial advisor and Dechert LLP provided legal counsel to CervoMed. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. provided legal counsel to EIP Pharma.
CervoMed enacted a 1-for-1.5 reverse stock split of its common stock. Following the reverse stock split and closing of the merger, there will be approximately 5.7 million shares of the combined company’s common stock outstanding, with prior EIP Pharma shareholders owning approximately 77.95% and prior Diffusion Pharmaceuticals shareholders owning 22.05%.
According to data captured in the LevinPro HC database, this transaction marks the 98th Biotechnology acquisition of the year.
