A Main Line pharmaceutical company that has developed a Covid-19 therapy under review by the Food and Drug Administration completed its previously announced multimillion-dollar private stock placement.
NRx Pharmaceuticals (NASDAQ: NRXP) of Radnor sold $30 million in stock to a group of unidentified investors. Under the terms of the deal, NRx sold about 2.73 million shares of its common stock at $11 per share.
The deal also included one investment option for each share purchased to buy an additional share of common stock at $12 apiece. The investment options are immediately exercisable and carry a term of three years following the date of issuance.
The company's stock was trading down 2.5% at $13.43 per share in mid-morning trading Tuesday.
The funding will provide resources to advance three late-stage assets, said Dr. Jonathan C. Javitt, CEO of NRx.
Part of the proceeds from the private placement will be used to support the transition of its Covid-19 therapy Zyesami from clinical to commercial stage pending regulatory approvals.
To date, Zyesami has only received regulatory approval in the nation of Georgia. The FDA is reviewing a new drug application the company filed for the therapy earlier this year.
The money will also be used to accelerate the development of an experimental Covid-19 vaccine it is developing in a partnership with the Israel Institute for Biological Research, Javitt said.
The third asset is a new drug candidate the company has under development for the treatment of suicidal bipolar depression and post-traumatic stress disorder.
NRx was established in May through the merger of Radnor-based NeuroRx with Big Rock Partners Acquisition Corp., a special-purpose acquisition company, in a deal valued at about $500 million.
H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
