NRx Pharmaceuticals Receives $16MM Senior Secured Debt Financing from Anson Funds

NRx Pharmaceuticals, a clinical-stage biopharmaceutical company, obtained up to approximately $16 million in convertible debt 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._x000D_
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“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,” Jonathan Javitt, chairman and chief scientist of NRx Pharmaceuticals, said. “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.”_x000D_
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“NRx Pharmaceuticals has a promising pipeline with potential to transform the lives of patients and their loved ones,” Amin Nathoo, principal of Anson Funds, said. “We are pleased to be working with the NRx Pharmaceuticals team to support these drugs in their registration and, hopefully, approval phase.”_x000D_
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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._x000D_
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EF Hutton acted as the exclusive placement agent for the financing._x000D_
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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.