NRx Pharmaceuticals, a clinical-stage biopharmaceutical company focused on developing treatments for central nervous system disorders, has secured up to $16 million in convertible debt financing. This financing, provided by an institutional investor known as Anson Funds, will be used to support the 2024 filing of New Drug Applications for NRx Pharmaceuticals’ two lead products, NRX-100 (ketamine) and NRX-101. These products are being developed for the treatment of suicidal depression and related conditions.
The financing will also allow NRx Pharmaceuticals to retire existing debt from Streeterville Capital. As part of the agreement, Streeterville has agreed to settle all claims and release them upon receipt of the agreed-upon settlement funds. The interest rate and other costs associated with this new financing are significantly lower than the company’s prior debt, making this a financially beneficial arrangement for NRx Pharmaceuticals.
Jonathan Javitt, MD, MPH, Chairman and Chief Scientist of NRx Pharmaceuticals, expressed enthusiasm about the financing, stating, “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.” He further emphasized the positive impact of retiring problematic debt on favorable terms and at a lower annual interest rate.
The Notes issued as part of the financing 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. Investors will also 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 subject to customary adjustments and adjustments for certain corporate transactions. 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.
NRx Pharmaceuticals is committed to developing effective and safe treatments for suicidal depression. The company has already announced plans to submit a New Drug Application for NRX-100 (IV ketamine) for the treatment of suicidal depression. This application is based on results from 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.
This financing represents a significant step forward for NRx Pharmaceuticals in its mission to bring innovative treatments to patients suffering from suicidal depression and related disorders. The company remains dedicated to its research and development efforts, with the ultimate goal of improving the lives of patients and their loved ones.
