Business
HOPE Therapeutics™, Inc. and NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Announce Signing of Binding Term Sheet for $27 Million in Funding for HOPE Clinic Acquisitions and Pharmaceutical Operations
Anticipated capital from funds managed by Smith & Sauer to augment potential bank-financing for acquisition of HOPE Therapeutics clinics and support NRx
About this update from Nrx Pharmaceuticals, Inc.
[{"type":"text","content":"Anticipated capital from funds managed by Smith & Sauer to augment potential bank-financing for acquisition of HOPE Therapeutics clinics and support NRx Pharmaceutical operations.Purchase of $25 million in Series A Preferred Stock in HOPE Therapeutics (non-dilutive to NRXP shareholders) convertible into 1/3 of fully diluted HOPE Therapeutics equity, with a 15% current preferred dividend (non-callable for 2 years) for planned HOPE clinic acquisitions.Purchase $2 million in NRx equity, above the most recent closing price, at $2.75 per share. Investor will also purchase 500,000 NRx shares from existing shareholders for $2.75 per shareIn connection with both investments, investor shall receive warrants to purchase 3 million currently unregistered shares of NRx common stock at $3.00 per share with a 24-month term.Smith & Sauer will also be entitled to receive royalties on net revenues from NRx product sales to a defined rate of returnInvestment in HOPE Therapeutics is expected to enhance NRXP's balance sheet value, strengthening its financial position.Smith & Sauer to join the HOPE Therapeutics and NRx Pharmaceuticals' Boards of DirectorsMIAMI, Jan. 6, 2025 /PRNewswire/ -- HOPE Therapeutics™, Inc., (\"HOPE\"), a medical and technology driven company, and a wholly-owned subsidiary of NRx Pharmaceuticals, Inc. (\"NRx\", and collectively with HOPE, the \"Company\") (Nasdaq:NRXP), today announced signing of a Binding Term Sheet with Smith & Sauer, LLC, for $25 million equity purchases to fund planned HOPE clinic acquisitions. Company management anticipates this new capital in combination with anticipated bank and/or bond lending to be sufficient to drive substantial revenue in HOPE clinic acquisition during 2025, as recently forecast by independent securities analysts. An additional $2 million equity investment in NRx Pharmaceuticals will be used to advance the Company's new drug applications for NRX-100 and NRX-101.\n\n \n \n \n \n \n \n\n \n\"We are honored to partner with NRx and HOPE to tackle the pressing mental health challenges facing our nation, particularly within the military and veteran communities,\" said Dallas Sauer, Co-Founder of Smith & Sauer.\n\"This partnership underscores the critical importance of addressing mental health with innovative and accessible solutions,\" said Anita Nunes, Co-Founder of Smith & Sauer. \"We a...