On December 16, 2022, Diffusion Pharmaceuticals Inc. announced that it has entered into a settlement agreement with LifeSci Special Opportunities Master Fund Ltd., with respect to, among other things, the membership and composition of the Company's board of directors before the Company's 2022 Annual Meeting of Stockholders. The Company stated that under the terms of the agreement, LifeSci Special Opportunities will withdraw its slate of director nominees previously nominated for election and vote in favor of the Board's recommended nominees at the Annual Meeting. The Company stated that it has agreed that, in the event it has not completed a transaction resulting from its ongoing strategic review process by July 1, 2023, the Company will promptly appoint an individual designated by LifeSci Special Opportunities to the Board, subject to certain conditions.