CervoMed Inc., formed through the merger of EIP Pharma, Inc. and Diffusion Pharmaceuticals, Inc. last year, said on 28 March that it raised up to $149.4m in a PIPE financing. (Also see "EIP And Diffusion Combine To Form CNS Firm With Dementia Focus" - Scrip, 31 March, 2023.) Boston-based CervoMed entered into a definitive securities purchase agreement with a group of institutional and health care investors for a private placement of 2.53 million units comprised of one share of common stock or one pre-funded series A warrant to buy common stock plus, in each case, one series A warrant to buy shares of its common stock. Each unit comprised of a common stock plus warrant was priced at $19.745 and each unit comprised of one pre-funded warrant plus another warrant was priced at $19.744. Initial proceeds to CervoMed will be $50m with up to $99.4m coming from future exercise of issued warrants. Warrants are exercisable at the earlier of 1 April 2027 or 180 days after the public readout of Phase IIb results for neflamapimod in dementia with Lewy bodies.

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