HOPE Therapeutics, Inc. and NRx Pharmaceuticals, Inc. (NRXP) jointly announced on Monday the execution of a Binding Term Sheet amounting to $27 million with Smith & Sauer, LLC.
Out of the total investment, $25 million is designated for the acquisition of Series A Preferred Stock in HOPE, earmarked to support their intended clinic acquisitions. The remaining funds will facilitate the progress of NRx's upcoming drug applications for NRX-100 and NRX-101. Additionally, the investor will acquire 500,000 shares of NRx from current shareholders at a price of $2.75 per share.
As part of the agreement, Smith & Sauer will receive warrants to purchase 3 million unregistered shares of NRx common stock, priced at $3 per share, with a validity of 24 months. The firm will also earn royalties from the net revenues generated through NRx’s product sales until a predefined rate of return is achieved.
Anita Nunes, Co-Founder of Smith & Sauer, commented that the partnership aims to introduce innovative and accessible solutions tackling mental health challenges.
Currently, shares of NRx are trading at $2.90, reflecting an increase of 8.09% on the Nasdaq.
