HOPE Therapeutics Inc., a subsidiary of NRx Pharmaceuticals Inc. (NRXP), Tuesday announced that it has entered into a Stock Purchase Agreement with Smith & Sauer LLC to secure funding for the planned acquisition of interventional psychiatry clinics.
Under the terms of the agreement, Smith & Sauer, LLC has committed to an immediate $2 million investment in NRx common stock and will invest an additional $25 million in newly issued Series A Preferred Stock of HOPE.
The proceeds from this transaction will be used to kickstart HOPE's nationwide rollup strategy for acquiring clinics that specialize in treating patients with severe, suicidal depression and PTSD.
The initial funding of $6.75 million is expected to close by February 7, 2025, with the full $25 million investment expected by April 1, 2025.
The funds, combined with anticipated bank financing, will support HOPE's plans to establish a best-in-class network of clinics providing ketamine therapy, Transcranial Magnetic Stimulation or TMS, and FDA-approved digital therapeutics.
HOPE plans to begin this rollup strategy with the acquisition of Kadima Neuropsychiatry in La Jolla, California. The company expects to generate approximately $100 million in revenues on a pro-forma basis by the end of 2025.
This transaction marks the beginning of HOPE's expansion into a national and potentially international network of facilities dedicated to addressing mental health challenges, particularly for underserved populations such as military veterans and their families.
NRXP closed Monday's (Jan.27 2025) trading at $2.85 down 11.49%. In premarket trading Tuesday, the stock is up 4.56% at $2.98.
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