synopsis

Chairman Jonathan Javitt said the resources committed are expected to bring NRx to the $100 million revenue threshold.

Shares of NRx Pharmaceuticals Inc. surged nearly 25% on Tuesday, its best session in almost three weeks, drawing heavy interest from retail traders.

The surge followed news of a $27 million funding deal to fund the company’s planned purchase of Hope clinics.

NRx’s Hope Therapeutics unit announced a stock purchase agreement with Smith & Sauer, a private investment firm specializing in healthcare and technology investments. 

The agreement includes an immediate $2 million investment in NRx common stock and a $25 million purchase of Hope’s Series A preferred shares, with $6.75 million due by Feb. 7 and the remainder by April 1. 

The funds will be used to expand Interventional Psychiatry Clinics focused on treating severe depression and other psychological disorders.

Chairman Jonathan Javitt said the resources committed are expected to bring NRx to the $100 million revenue threshold. 

He added that the company had initiated a financial advisory relationship to raise an additional $400 million for broader expansion. 

"Psychedelic Medications such as ketamine, neuromodulation technologies such as TMS, and digital therapeutics have sparked a revolution in psychiatry where for the first time patients with life threatening conditions such as depression and PTSD hope for a brighter future,” he said.

Retail traders on Stocktwits took note, with message volume surging 94% on Tuesday and remaining at high levels ahead of Wednesday’s market open. 

Sentiment on the stock turned ‘bullish,’ with investors speculating on the impact of the projected $100 million revenue on earnings and share price. 

One user even predicted that the stock could more than double from current levels.

Despite losing 11% in value over the past year, NRx Pharmaceuticals has seen a 177% gain in the past three months, driven by increasing retail interest. 

The company’s follower count on Stocktwits has risen 3% over the last 12 months, while message volume has jumped 188%.

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