NRx Pharmaceuticals, HOPE sign term sheet for $27M in funding

HOPE Therapeutics and a wholly-owned subsidiary of NRx Pharmaceuticals (NRXP) 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. The binding Term Sheet, to be disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission, provides $25 Million in Series A Preferred Stock convertible into 1/3 of fully diluted HOPE Therapeutics equity, with a 15% current preferred dividend and product royalties up to a total of $250 million in cumulative returns to the investor. Smith & Sauer will also purchase $2 million in NRx common stock at $2.75 per share. In consideration for the combined investment, Smith & Sauer shall receive warrants to purchase 3 million shares of currently unregistered shares of NRx common stock at $3.00 per share with a 24 month term. Additionally, Smith & Sauer will have the right to designate a director to join the HOPE Therapeutics and NRx Pharmaceuticals’ Boards of Directors. The transactions contemplated by the Term Sheet are subject to execution of definitive agreements and the satisfaction of standard closing conditions.