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NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Announces Up to $16 Million Senior Secured Debt Financing from Anson Funds
This financing is expected to support 2024 filing of New Drug Applications forNRX-100 (ketamine) and NRX-101 and to support launch of HOPE
About this update from Nrx Pharmaceuticals, Inc.
[{"type":"text","content":"This financing is expected to support 2024 filing of New Drug Applications forNRX-100 (ketamine) and NRX-101 and to support launch of HOPE TherapeuticsStreeterville Capital has agreed to a settlement of all claims to be paid from the proceeds of this financingRADNOR, 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.\n\n \n \n \n \n \n \n\n \n\"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.\"\n\"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.\nThe 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 cus...