HOPE Therapeutics™, Inc. and NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Engage BTIG as Financial Advisor

Rhea-AI Summary

HOPE Therapeutics, a wholly-owned subsidiary of NRx Pharmaceuticals (NASDAQ:NRXP), has engaged BTIG as its financial advisor to support its expansion plans. BTIG will assist in evaluating strategic and financing options, identifying potential acquisition targets, and structuring equity and debt financing for HOPE's planned network of interventional psychiatry clinics.

The company recently secured a $27 million funding agreement for HOPE Clinic Acquisition and plans to leverage this investment with proposed bank debt to fund its initial rollup of Interventional Psychiatry Clinics. These facilities will combine ketamine treatment with transcranial magnetic stimulation and digital therapeutics to treat severe depression and PTSD.

Positive

• Secured $27 million funding agreement for clinic acquisitions
• Engaged BTIG, a leading financial services firm, for strategic advisory and financing support
• Plans to leverage initial funding with bank debt for clinic network expansion

Negative

• None.

Insights

Investment Banking Analyst

The engagement of BTIG marks a pivotal strategic shift for NRXP, signaling an aggressive expansion into the rapidly growing interventional psychiatry market. The $27 million initial funding, combined with proposed bank debt leverage, positions HOPE Therapeutics to execute a calculated roll-up strategy in a fragmented clinical landscape.

This move is particularly significant for three reasons: First, the interventional psychiatry market represents a substantial growth opportunity, with ketamine therapy clinics alone projected to see double-digit growth rates amid rising mental health demands. Second, the combination of ketamine treatment, transcranial magnetic stimulation and digital therapeutics creates a differentiated, comprehensive treatment platform that could command premium pricing and better reimbursement rates. Third, BTIG's expertise in healthcare services and proven track record in M&A advisory suggests a sophisticated approach to clinic acquisitions and financing structuring.

Key execution considerations include:

• Acquisition multiples for psychiatric clinics typically range from 4-6x EBITDA, suggesting potential for 5-7 initial clinic acquisitions
• Integration challenges across different clinic operations and treatment protocols will require standardization
• Working capital requirements for clinic operations and technology implementation need careful management
• Regulatory compliance across multiple jurisdictions must be navigated

While the strategy shows promise, investors should monitor several metrics: acquisition pace, integration success, operational synergies achieved and the company's ability to maintain quality standards across an expanding network. The engagement of BTIG provides valuable strategic guidance but execution will be key to realizing shareholder value.

• HOPE has announced plans to assemble a best-in-class global network of interventional psychiatry clinics combining ketamine treatment with transcranial magnetic stimulation, and digital therapeutics to treat severe depression and PTSD
  
  
• BTIG is a leading global financial services firm specializing in investment banking, institutional trading, research, and related brokerage services
  
  
• Advisory to include identification and evaluation of clinic partners and strategic assets and investment banking services in connection with financing initiatives to accelerate the Company's business plan

MIAMI, Feb. 3, 2025 /PRNewswire/ -- HOPE Therapeutics™, Inc. ("HOPE"), a medical and technology driven company, and a wholly-owned subsidiary of NRx Pharmaceuticals, Inc. ("NRx", and collectively with HOPE, the "Company") (Nasdaq:NRXP), today announced engagement of BTIG, a leading global financial services firm specializing in investment banking, institutional trading, research and related brokerage services.  The scope of the engagement includes advisory and assistance in evaluating strategic and financing options available to the Company and identification, evaluation and negotiation of potential acquisition targets for the HOPE network of clinics, as well as equity and debt financing structures.

The Company has recently announced execution of an agreement for $27 million in funding for HOPE Clinic Acquisition. Upon closing of the first tranche of the anticipated financing, the Company currently intends to leverage the investment with proposed bank debt and similar instruments to fund its initial rollup of Interventional Psychiatry Clinics. The Company has now engaged BTIG to advise the Company on clinical partners to acquire and to facilitate acquisition capital financing.

"We are excited to partner with NRx and HOPE to accelerate the Company's business strategy of assembling a global network of Interventional Psychiatry Clinics," said Robert Dentice, Managing Director Investment Banking, BTIG.  "Addressing the mental health crisis in this country and abroad is a vital need which we are honored to help address."

"We are pleased to engage with BTIG to build our HOPE network and work to establish HOPE as a leading provider of world-class care for patients suffering from suicidal depression, PTSD and related conditions," said Jonathan Javitt, MD MPH and Matthew Duffy, Co-CEOs of HOPE Therapeutics. "BTIG is exceptionally well positioned to propel HOPE to achieve our goals, and we look forward to working with the firm to execute on our plan." 

The information in this press release is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.  No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About BTIG

BTIG is a global financial services firm specializing in investment banking, institutional trading, research and related brokerage services. With an extensive global footprint and more than 700 employees, BTIG, LLC and its affiliates operate out of 20 cities throughout the U.S., and in Europe, Asia and Australia. BTIG offers execution, expertise and insights for equities, equity derivatives, ETFs and fixed income, currency and commodities. The firm's core capabilities include global execution, portfolio, electronic and outsource trading, investment banking, prime brokerage, capital introduction, corporate access, research and strategy, commission management and more.

About HOPE Therapeutics, Inc.

HOPE Therapeutics, Inc. (www.hopetherapeutics.com) is a development stage healthcare delivery company that intends to develop a best-in-class network of interventional  psychiatry clinics to offer ketamine transcranial magnetics stimulation (TMS) and other lifesaving therapies to patients with suicidal depression and related disorders, together with a digital therapeutic-enabled platform designed to augment and preserve the clinical benefit of NMDA-targeted drug therapy.

About NRx Pharmaceuticals, Inc.

NRx Pharmaceuticals is a clinical-stage biopharmaceutical company developing therapeutics based on its NMDA platform for the treatment of central nervous system disorders, specifically suicidal bipolar depression, chronic pain, and PTSD. The Company is developing NRX-101, an FDA-designated investigational Breakthrough Therapy for suicidal treatment-resistant bipolar depression and chronic pain. NRx plans to file an NDA for Accelerated Approval for NRX-101 in patients with bipolar depression and suicidality or akathisia. NRX-101 additionally has potential to act as a non-opioid treatment for chronic pain, as well as a treatment for complicated UTI.

NRx has recently initiated a New Drug Application filing for NRX-100 (IV ketamine) for the treatment of suicidal depression, based on results of well-controlled clinical trials conducted under the auspices of the US National Institutes of Health and newly obtained data from French health authorities, licensed under a data sharing agreement. NRx was awarded Fast Track Designation for development of ketamine (NRX-100) by the US FDA as part of a protocol to treat patients with acute suicidality.

Notice Regarding Forward-Looking Statements

The information contained herein includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, among others, statements regarding the consummation of the $27 million in financing necessary to consummate the acquisitions of Hope's clinics, entering into binding documentation necessary to consummate the acquisitions, and the Company's ability to raise equity or debt financing. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "plan," "believe," "intend," "look forward," and other similar expressions among others. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, including the risk that the transactions contemplated by the LOI are not consummated, uncertainties and assumptions relating to the Company's operations, results of operations, growth strategy, liquidity, HOPE Therapeutic's ability to consummate the acquisitions of providers for its national network, the Company's ability to raise adequate capital to fund such acquisitions, and the Company's ability to spin-off HOPE Therapeutics.  More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. Except as may be required by applicable law, The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: 
Matthew Duffy
Chief Business Officer, NRx Pharmaceuticals
Co-Chief Executive Officer, HOPE Therapeutics, Inc.
mduffy@nrxpharma.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/hope-therapeutics-inc-and-nrx-pharmaceuticals-inc-nasdaqnrxp-engage-btig-as-financial-advisor-302366415.html

SOURCE NRx Pharmaceuticals, Inc.

FAQ

What is the value of HOPE Therapeutics' recent funding agreement for clinic acquisitions?

HOPE Therapeutics has secured a $27 million funding agreement for HOPE Clinic Acquisition.

What treatments will HOPE Therapeutics' clinics offer for mental health conditions?

The clinics will combine ketamine treatment with transcranial magnetic stimulation and digital therapeutics to treat severe depression and PTSD.

What role will BTIG play in HOPE Therapeutics' expansion strategy?

BTIG will provide advisory services for evaluating strategic and financing options, identifying acquisition targets, and structuring equity and debt financing for the clinic network.

How does NRXP plan to finance its clinic acquisition strategy?

NRXP plans to leverage its $27 million funding agreement with proposed bank debt and similar instruments to fund its initial rollup of Interventional Psychiatry Clinics.