- This financing is expected to support 2024 filing of New Drug
Applications for
NRX-100 (ketamine) and NRX-101 and to support launch of HOPE
Therapeutics
- Streeterville Capital has agreed to a settlement of all claims
to be paid from the
proceeds of this financing
RADNOR,
Pa., Aug. 13, 2024 /PRNewswire/ -- NRx
Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals" or the
"Company"), a clinical-stage biopharmaceutical company, today
announced that it has obtained up to approximately $16
million in convertible debt financing (the "Financing") from
an institutional investor. The Company intends to use the net
proceeds from the Financing to support the 2024 New Drug
Application filing its two lead products, NRX-100 and NRX-101 and
to retire existing debt from Streeterville Capital. Concurrent with
this financing, Streeterville has agreed to stay its arbitration
and to release all claims upon receipt of the agreed settlement
funds. The interest rate and other costs of capital are
substantially lower than prior debt.
"We are thrilled to have attracted a forward-looking
science-focused investor to our company. The proceeds from their
investment will support our FDA filing of two lifesaving drugs that
address critical unmet medical needs for patients with suicidal
depression. In the process, we are retiring problematic debt from
our balance sheet on favorable terms, and at a lower annual
interest rate," said Jonathan
Javitt, MD, MPH, Chairman and Chief Scientist of NRx
Pharmaceuticals. "We are pleased to welcome Anson Funds to
NRx Pharmaceuticals and delighted that they have chosen to share
our mission of bringing Hope to Life."
"NRx Pharmaceuticals has a promising pipeline with potential to
transform the lives of patients and their loved ones. We are
pleased to be working with the NRx Pharmaceuticals team to support
these drugs in their registration and – hopefully – approval
phase," said Amin Nathoo, Principal,
Anson Funds.
The Notes have an interest rate of 6% per annum with a term of
15 months and will be convertible into shares of the Company's
common stock. The investors will receive warrant coverage
equivalent to 50% of their investment, exercisable into shares of
the Company's common stock. The conversion price of the Notes
and the exercise price of the Warrants will be each subject to
customary adjustments and adjustments for certain corporate
transactions, and the issuance of shares of Common Stock underlying
the Notes and Warrants will be subject to stockholder approval as
required by the listing rules of the Nasdaq Capital Market. The
Company will file a Current Report on Form 8-K with the U.S.
Securities and Exchange Commission, which will describe the terms
of the Notes and Warrants, and include copies of transaction
documents relating to the Notes, the Warrants and the
Financing.
EF Hutton LLC acted as the exclusive placement agent for the
Financing.
The Notes and Warrants have not been registered under the
Securities Act of 1933, as amended, and may not be resold in
the United States except pursuant
to an effective registration statement with the Securities and
Exchange Commission or an exemption from registration under the
Securities Act and any applicable state securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor will there be any sales of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
About NRx Pharmaceuticals, Inc.
NRx Pharmaceuticals is a clinical-stage biopharmaceutical
company developing therapeutics based on its NMDA platform for the
treatment of central nervous system disorders, specifically
suicidal bipolar depression, chronic pain, and PTSD. The Company is
developing NRX-101, an FDA-designated investigational Breakthrough
Therapy for suicidal treatment-resistant bipolar depression and
chronic pain. NRx plans to file an NDA for Accelerated Approval for
NRX-101 in patients with bipolar depression and suicidality or
akathisia. NRX-101 additionally has potential to act as a
non-opioid treatment for chronic pain, as well as a treatment for
complicated UTI.
NRx Pharmaceuticals has recently announced plans to submit a New
Drug Application for NRX-100 (IV ketamine) for the treatment of
suicidal depression, based on results of well-controlled clinical
trials conducted under the auspices of the US National Institutes
of Health and newly obtained data from French health authorities,
licensed under a data sharing agreement. NRx Pharmaceuticals was
awarded Fast Track Designation for development of ketamine
(NRX-100) by the US FDA as part of a protocol to treat patients
with acute suicidality.
About HOPE Therapeutics, Inc.
HOPE Therapeutics, Inc. (www.hopetherapeutics.com) is a
care delivery company developing a best-in-class network of clinics
that currently offer ketamine and other lifesaving therapies to
patients with suicidal depression and related disorders, together
with a digital therapeutic-enabled platform designed to augment and
preserve the clinical benefit of NMDA-targeted drug therapy.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements which
involve substantial risks and uncertainties. Forward-looking
statements are often identifiable by the words "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intend,"
"may," "might," "objective," "ongoing," "plan," "predict,"
"project," "potential," "should," "will," or "would," or the
negative of these terms, or other comparable terminology intended
to identify statements about the future. These statements involve
known and unknown risks, uncertainties and other factors that may
cause the Company's actual results, levels of activity, performance
or achievements to be materially different from the information
expressed or implied by these forward-looking statements. Although
the Company believes that it has a reasonable basis for making each
forward-looking statement contained in this press release, the
Company cautions that these statements are based on a combination
of facts and factors currently known by the Company and its
expectations of the future, about which the Company cannot be
certain. Forward-looking statements are subject to considerable
risks and uncertainties, as well as other factors that may cause
the Company's actual results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by these forward-looking statements.
These risks and uncertainties include, without limitation, risks
and uncertainties related to whether or not the Company will be
able to raise capital through the sale of its securities; the
Company's ability to consummate the offering; the Company's ability
to repay the Note; the Company being able to fulfill the conditions
for a second closing and a third closing and receive the remainder
of the financing amount; the Company being able to receive the
consent of its stockholders to the Financing; market conditions;
satisfaction of customary closing conditions related to future
closings; the Company's ability to maintain adequate liquidity and
financing sources; various risks related to the Company's business
operations; and other risks and uncertainties, including those
described within the section entitled "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2023, and other filings
with the Securities and Exchange Commission.
Investors and security holders are urged to read these documents
free of charge on the SEC's website at http://www.sec.gov.
Except as may be required by applicable law, The Company assumes no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE NRx Pharmaceuticals, Inc.