RADNOR, PA — NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) recently secured up to $16 million in convertible debt financing from an institutional investor. The company plans to use the funds to support the 2024 New Drug Application filings for its two lead products, NRX-100 and NRX-101, and to retire existing debt from Streeterville Capital.
Jonathan Javitt, MD, MPH, Chairman and Chief Scientist of NRx Pharmaceuticals, expressed enthusiasm about the new investment. “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.”
The financing deal includes an interest rate of 6% per annum with a 15-month term. The debt is convertible into shares of the company’s common stock, with investors receiving warrant coverage equivalent to 50% of their investment. The conversion and exercise prices are subject to customary adjustments and stockholder approval, as required by Nasdaq Capital Market rules.
EF Hutton LLC acted as the exclusive placement agent for the financing.
Amin Nathoo, Principal at Anson Funds, shared his thoughts on the collaboration. “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.”
The company will file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission, detailing the terms of the notes and warrants and including copies of the transaction documents.
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