NRx Pharmaceuticals Eliminates All Balance Sheet Debt Through Equity Conversion

NRx Pharmaceuticals, Inc. (NASDAQ: NRXP) has announced the elimination of all balance sheet debt through an equity conversion transaction with Anson Funds LLC. The clinical-stage biopharmaceutical company repaid the remaining $5.4 million owed to Anson through conversion into common stock with no warrants or repricing mechanisms, fully retiring the original $16.2 million loan that was used for prior debt repayment and operating expenses. This strategic financial move positions NRx Pharmaceuticals to end calendar year 2025 completely debt free, creating a capital structure designed to support anticipated drug approvals and clinic expansions.

The company's Chairman and CEO, Dr. Jonathan Javitt, expressed gratitude for Anson's support during what he described as a challenging period for the biotech market. Javitt specifically cited progress toward potential 2026 approvals and expansion for treatments addressing two critical mental health conditions: suicidal depression and PTSD. The debt elimination comes at a crucial time for NRx Pharmaceuticals as it advances its NMDA platform therapeutics for central nervous system disorders. The company is developing NRX-100, a preservative-free intravenous ketamine that has received Fast Track Designation for the treatment of Suicidal Ideation in Depression, including Bipolar Depression. Additionally, NRx is advancing NRX-101, an oral D-cycloserine/lurasidone combination that has been awarded Breakthrough Therapy Designation for the treatment of suicidal bipolar depression.

NRx Pharmaceuticals has recently taken significant regulatory steps by filing an Abbreviated New Drug Application (ANDA) and initiating a New Drug Application filing for NRX-100 (IV ketamine). The company has also applied for the Commissioner's National Priority Voucher Program specifically for the treatment of suicidal depression. These developments, combined with the newly debt-free balance sheet, create what company leadership believes is an optimal financial position to advance clinical programs and prepare for potential commercialization. The elimination of debt through equity conversion rather than cash repayment preserves operating capital while removing financial obligations that could otherwise constrain research and development activities.

The transaction represents a significant milestone in NRx Pharmaceuticals' financial restructuring and strategic positioning within the competitive biopharmaceutical landscape. By converting debt to equity, the company has aligned investor interests with long-term clinical development goals while removing the burden of debt service payments. This approach allows NRx to focus resources on advancing its pipeline of treatments for serious mental health conditions that currently represent significant unmet medical needs. The company's website at https://www.nrxpharma.com provides additional information about its therapeutic platforms and clinical programs. The broader psychedelics sector continues to evolve, with specialized communications platforms like PsychedelicNewsWire providing coverage of developments across the industry. The full terms of use and disclaimers for such content are available at https://www.PsychedelicNewsWire.com/Disclaimer.