Note 16 - Subsequent Event

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

16.

 Subsequent Event

On

January 22, 2018,

Diffusion Pharmaceuticals Inc. (the “Company”) closed its previously announced underwritten public offering of

15,000,000

shares of the Company’s common stock, par value

$0.001

per share (“Common Stock”), and warrants to purchase

15,000,000

shares of Common Stock. At the closing, the Company also issued warrants to purchase an additional

1,970,625

shares of Common Stock pursuant to the underwriter’s partial exercise of its overallotment option. The shares of Common Stock and warrants were sold at a combined public offering price of

$0.80

per share and warrant for total gross proceeds of approximately

$12.0

million. The warrants have an exercise price of

$0.80

per share and a term of

five

years from the date of issuance. In addition, at the closing, the Company issued to designees of the underwriter of the offering warrants to purchase up to

750,000

shares of Common Stock. The underwriter’s warrants have an exercise price of

$1.00,

a term of

five

years from the date of issuance and otherwise substantially similar terms to the form of investor warrant. As a result of the offering, all outstanding shares of the Company's Series A convertible preferred stock converted into

20,568,632

shares (the "Conversion Shares) of common stock (including accrued dividends paid in kind and the "make-whole" adjustment feature thereof).