By Chris Wack
NRx Pharmaceuticals shares were down 19%, to 53 cents, after the clinical-stage biopharmaceutical company said it has entered into definitive agreements for the purchase and sale of 9.7 million shares at 65 cents a share in a registered direct offering.
The stock closed Monday’s session down 27%, and is down 17% in the past 12 months.
In a concurrent private placement, NRx Pharmaceuticalssaid it would issue unregistered warrants to buy up to 9.7 million shares at an exercise price of 65.25 cents a share that will be exercisable six months following issuance for five years following the initial exercise date.
The exercise price of the warrants is not subject to future price adjustment, other than for stock splits. The closing of the offering is expected to occur on or about Thursday.
The proceeds from the offering are expected to be $6.3 million, and the company intends to use the proceeds from the offering for working capital and general corporate purposes, and may use the proceeds to initiate research into the use of NRX-101 for the treatment of PTSD and chronic pain.
Write to Chris Wack at chris.wack@wsj.com
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