NRx Pharmaceuticals invests $27M in subsidiary Hope for clinic acquisitions

NRx Pharmaceuticals (NRXP)’ wholly-owned subsidiary Hope Therapeutics signed a Stock Purchase Agreement with Smith & Sauer as the first step in a $27.0M financing to fund the planned acquisition of Hope clinics. The agreement provides for the immediate funding of $2.0M in NRx common stock and commits Smith and Sauer to purchase an additional $25M in newly issued Series A Preferred Stock of HOPE, the proceeds of which are intended to be used to initiate a nationwide rollup of Interventional Psychiatry Clinics to treat patients with severe, suicidal depression and PTSD. The first $6.75M tranche is committed by February 7, with the full $25M committed on or before April 1. The company anticipates leveraging the Smith and Sauer investment with bank debt and similar instruments to fund an initial rollup of Interventional Psychiatry Clinics with anticipated revenues of approximately $100M on a pro-forma basis by the end of 2025Hope anticipates building a best-in-class nationwide chain of facilities that combine treatment with ketamine and other psychedelic medications with Transcranial Magnetic Stimulation and recently FDA-approved Digital Therapeutics to best serve patients with life-threatening depression, PTSD, and related disorders.