RADNOR, Pa. - NRx Pharmaceuticals, Inc. (NASDAQ: NRXP), a clinical-stage biopharmaceutical company, announced today its intention to conduct an underwritten public offering of its common stock. The entirety of the stock will be sold by NRx Pharmaceuticals, with the timing and details of the offering contingent on market conditions.
The company has not disclosed the offering's size or terms, which remain subject to market fluctuations. EF Hutton LLC has been appointed as the sole book-running manager for the transaction.
NRx Pharmaceuticals has specified that the net proceeds from the sale will be directed towards working capital and general corporate purposes, including the establishment of a national treatment protocol and safety database. Moreover, funds may be allocated to repay certain existing debts.
The offering will be made under a previously filed "shelf" registration statement with the U.S. Securities and Exchange Commission (SEC), which became effective on June 21, 2022. Prospective investors are advised to consult the preliminary prospectus supplement and accompanying prospectus, as well as other relevant documents filed with the SEC, which provide further details about NRx Pharmaceuticals and the offering.
NRx Pharmaceuticals focuses on developing treatments for central nervous system disorders such as suicidal bipolar depression, chronic pain, and PTSD, leveraging its NMDA platform. The company's lead candidate, NRX-101, has received Breakthrough Therapy designation for treatment-resistant bipolar depression and is also being explored as a non-opioid treatment for chronic pain and complicated UTI.
Furthermore, NRx has announced its intention to submit a New Drug Application for another of its products, HTX-100 (IV ketamine), for the treatment of suicidal depression, backed by clinical trial results and data from French health authorities.
The company cautions that this press release contains forward-looking statements that involve significant risks and uncertainties, and there can be no guarantee that the offering will be completed as planned, or at all.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offers will be made exclusively through the prospectus supplement and accompanying prospectus forming part of the registration statement.
The information reported is based on a press release statement from NRx Pharmaceuticals, Inc.
InvestingPro Insights
In light of NRx Pharmaceuticals' recent announcement regarding its public stock offering, potential investors and market watchers are paying close attention to the company's financial health and market performance. According to real-time data from InvestingPro, NRXP has a market capitalization of $39.63 million, reflecting its standing in the industry amidst its clinical-stage peers.
The company's current P/E ratio stands at -1.06, and when adjusted for the last twelve months as of Q4 2023, it is -1.44, which may indicate investor skepticism about future earnings potential or a reflection of its current developmental stage where earnings are not the primary focus.
Moreover, NRx Pharmaceuticals is experiencing a significant EBITDA growth rate of 37.78% over the same period, suggesting that the company is seeing improvement in its earnings before interest, taxes, depreciation, and amortization, which could be a positive sign for its operational efficiency.
Two critical InvestingPro Tips for NRx Pharmaceuticals include the company's rapid cash burn and the observation that its stock has suffered a considerable hit over the last week, with a 1-week price total return of -22.24%.
These factors are essential considerations for investors contemplating participating in the stock offering. It is also worth noting that analysts do not expect the company to be profitable this year and that it has not been profitable over the last twelve months.
For those looking to delve deeper into the metrics and strategic outlook for NRx Pharmaceuticals, InvestingPro offers additional insights and tips. Currently, there are six more InvestingPro Tips available that could further inform investment decisions, accessible through the dedicated InvestingPro platform at https://www.investing.com/pro/NRXP. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a more comprehensive analysis of NRXP's financial standing and market potential.
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