Major $27 Million Funding Breakthrough for HOPE and NRx

HOPE Therapeutics and NRx Pharmaceuticals Sign Major Funding Agreement

HOPE Therapeutics™, Inc., alongside NRx Pharmaceuticals, Inc. (NASDAQ:NRXP), proudly announces an exciting partnership aimed at transforming the landscape of mental health care. This collaboration is set to provide crucial funding of $27 million to enhance clinic acquisitions and support critical pharmaceutical operations.

Strategic Capital Investment from Smith & Sauer

This significant capital will be marshaled from funds managed by Smith & Sauer, designed to fortify bank financing for the acquisition of HOPE Therapeutics clinics. The infusion of capital is pivotal for the operational advancements of NRx Pharmaceuticals. The investment is notably structured as follows:

• The purchase of $25 million in Series A Preferred Stock from HOPE Therapeutics, which remains non-dilutive to existing NRXP shareholders.
• This preferred stock is convertible into one-third of fully diluted equity within HOPE Therapeutics and includes a generous 15% current preferred dividend that is non-callable for the first two years.
• In addition, Smith & Sauer will invest $2 million in equity for NRx Pharmaceuticals at a favorable price of $2.75 per share, contributing to the growth potential of the company.
• Furthermore, they will acquire 500,000 shares from existing shareholders at the same price of $2.75 each.
• As part of this investment strategy, the investor will receive warrants for the option to purchase 3 million unregistered shares of NRx common stock at $3.00 per share.
• Smith & Sauer's financial strategy includes royalties on net revenues from NRx product sales, reflecting their interest in the long-term success of both companies.

This financial backing is set to enhance NRx's position in the market, bolstering the company's balance sheet significantly and advancing its mission to provide comprehensive mental health solutions.

Experts Weigh In on the Partnership

Leaders from both organizations expressed their enthusiasm regarding this collaboration. Dallas Sauer, Co-Founder of Smith & Sauer, remarked on the importance of tackling mental health challenges within the military and veteran communities. He emphasized that this partnership represents a critical step towards addressing pressing mental health issues with innovative solutions.

Meanwhile, Anita Nunes, also a Co-Founder, highlighted the initiative's focus on delivering affordable and transformative care to underserved communities, reaffirming their commitment to supporting the objectives of HOPE and NRx.

Integration and Future Vision

Dr. Jonathan Javitt, Chairman of NRx Pharmaceuticals, greeted the arrival of Smith & Sauer into the organizational fold. He acknowledged their long-term strategic vision aligns well with the objectives of NRx and HOPE, paving the way for a prosperous future. The collaboration combines investment with invaluable expertise in health information technology, crucial for expanding HOPE's international network of clinics.

The Importance of Funding in Mental Health Treatment

As part of the binding Term Sheet, this arrangement makes provisions for $25 million monetary capital through Series A Preferred Stock, which is expected to yield a cumulative return potential up to $250 million during the investment term.

Additionally, this financial strategy allows NRx to advance its new drug applications for therapies like NRX-100 and NRX-101, targeting critical conditions such as suicidal depression. With NRx's pipeline focusing on innovative treatments for central nervous system disorders, this investment comes at a crucial time.

About the Companies

HOPE Therapeutics, Inc. is dedicated to revolutionizing mental healthcare with a specialized network of clinics designed for delivering life-saving therapies, including ketamine and transcranial magnetic stimulation (TMS). The company aims to integrate advanced digital therapeutic platforms to maximize therapeutic outcomes for patients.

NRx Pharmaceuticals is at the forefront of clinical-stage biopharmaceuticals, concentrating on conditions that notoriously lack effective treatment options. Their ongoing research and development in medications targeting suicidal bipolar depression and PTSD promise to make a significant impact in mental health treatment, underscoring their commitment to addressing serious health challenges.

This funding opportunity is a beacon for innovation within the mental health sector and signifies a profound commitment to care for vulnerable populations, particularly veterans and those with severe mental health issues.

Frequently Asked Questions

What is the total funding announced for HOPE and NRx?

The total funding amounts to $27 million dedicated to clinic acquisitions and pharmaceutical operations.

Who is providing the funding?

The funding is being facilitated by Smith & Sauer, a private investment firm specializing in healthcare and technology.

What are the key terms of the investment?

The key terms include $25 million in Series A Preferred Stock and an additional $2 million for NRx common stock.

How will this funding impact mental healthcare?

This funding aims to enhance mental health treatment services, particularly for underserved communities and veterans.

What are NRx Pharmaceuticals' primary therapeutic focuses?

NRx focuses on developing treatments for central nervous system disorders, including suicidal depression, chronic pain, and PTSD.

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