NRx Pharmaceuticals, Inc. has fully repaid the remaining $5.4 million of its balance‑sheet debt to Anson Funds, LLC by converting the obligation into common stock, thereby removing the interest‑bearing liability from its books.
The original loan, which totaled $16.2 million, is now fully extinguished. The conversion was executed at the company’s then‑market price, with no warrants or repricing mechanisms attached, and the company has not disclosed the exact number of shares issued, but the transaction is expected to be modestly dilutive to existing shareholders.
Eliminating the debt improves NRx’s leverage profile and cash‑flow generation. The company’s prior quarter financials showed an EBITDA of –$15.2 million and an operating loss of $4 million in Q3 2025, up from $3 million in Q3 2024, while a current ratio of 0.29 highlighted short‑term liquidity pressure. The debt conversion removes the working‑capital deficit that had prompted a going‑concern warning in earlier filings.
With the debt cleared, NRx can redirect cash toward its dual‑track strategy: expanding the HOPE Therapeutics clinic network and advancing its lead drug candidates, NRX‑100 (intravenous ketamine) and NRX‑101 (oral D‑cycloserine/lurasidone). Dr. Jonathan Javitt, Chairman and CEO, said the company is grateful to Anson Funds for their support and emphasized that the debt‑free capital structure positions NRx for accelerated growth in 2026 as it pursues regulatory milestones.
The announcement was well received by investors, with the stock gaining 8.57 % on the day of the news while peers in the biotechnology sector declined, reflecting confidence in the company’s improved financial footing.
Overall, the debt elimination is a significant de‑risking event that strengthens NRx’s balance sheet and provides the financial flexibility needed to pursue its clinical and commercial objectives.
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