NRx stock rallies 35% on equity purchases, clinic acquisition

NRx Pharmaceuticals (NASDAQ:NRXP) stock rallied 35% Monday after its subsidiary HOPE Therapeutics announced the signing of a binding term sheet with Smith & Sauer for $25M in equity purchases to fund the acquisition of clinics.

HOPE said it expects the "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."

Smith & Sauer will also make an additional $2M equity investment in NRx (NASDAQ:NRXP), which will be used to advance new drug applications for NRX-100 and NRX-101, according to a statement.

Smith & Sauer will be paying $2.75 per share for the NRx (NRXP) equity stake and will be entitled to receive royalties on net revenues from NRx (NRXP) product sales. The firm will also be entitled to a seat on the boards of HOPE and NRx (NRXP).

HOPE also announced it has signed a non-binding letter of intent to buy Florida-based Dura Medical, which operates clinics for the treatment of mental health and chronic pain. The company said it expects Dura to serve as an anchor in Florida for its planned international network of interventional psychiatry clinics.

The Dura deal is subject to obtaining necessary financing, the completion of financial audits, execution of definitive agreements, and the satisfaction of standard closing conditions, according to a statement.