HOPE Therapeutics™, Inc. and NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Announce Signing of Binding Term Sheet for $27 Million in Funding for HOPE Clinic Acquisitions and Pharmaceutical Operations

Core Insights - HOPE Therapeutics, Inc. has signed a Binding Term Sheet with Smith & Sauer, LLC for a $25 million equity purchase to fund planned clinic acquisitions, with additional $2 million investment in NRx Pharmaceuticals for drug applications [1][4][6] - The investment is expected to drive substantial revenue growth in HOPE clinic acquisitions during 2025, as forecasted by independent analysts [1][4] - Smith & Sauer's investment includes Series A Preferred Stock convertible into 1/3 of fully diluted HOPE equity, with a 15% preferred dividend and potential royalties up to $250 million [4][6] Company Overview - HOPE Therapeutics aims to develop a network of interventional psychiatry clinics offering innovative therapies for patients with suicidal depression and related disorders [8] - NRx Pharmaceuticals is focused on developing therapeutics for central nervous system disorders, including suicidal bipolar depression and chronic pain, with ongoing New Drug Applications for NRX-100 and NRX-101 [9][10] Strategic Partnership - The partnership with Smith & Sauer is aligned with addressing mental health challenges, particularly for military and veteran communities [2][3] - Smith & Sauer brings expertise in health information technology, which will be crucial for integrating HOPE's clinic network [3][7] Financial Details - The $25 million investment will be in Series A Preferred Stock, non-dilutive to NRx shareholders, and includes warrants for purchasing 3 million shares of NRx common stock at $3.00 per share [4][6] - Smith & Sauer will also purchase $2 million in NRx common stock at $2.75 per share, enhancing NRx's balance sheet value [4][6]