NRx Pharmaceuticals Announces Results of the Vote Held During the Special Meeting of Shareholders

Rhea-AI Summary

NRx Pharmaceuticals, Inc. announces the results of a Special Meeting of Shareholders with 61.4% of eligible shares voted, 94.4% in favor of a proposal for a reverse stock split. Despite efforts to suppress the vote, shareholders showed overwhelming support for the resolution.

Financial Analyst

The decision to authorize a reverse stock split is a significant financial strategy that companies often use to increase the perceived value of their stock, improve liquidity and possibly meet stock exchange listing requirements. In the case of NRx Pharmaceuticals, the substantial majority vote in favor suggests strong shareholder backing. This move could potentially reduce the number of shares available in the market, which may lead to an increase in the stock price, albeit without changing the company's market capitalization.

However, investors should be aware that while a reverse stock split can provide short-term price support, it does not fundamentally alter the company's financial health or growth prospects. It is also essential to consider that such corporate actions could sometimes be perceived negatively, as they may indicate underlying issues with the stock's performance or a means to avoid delisting. The long-term effects will largely depend on the company's ability to leverage this structural change to attract institutional investors and improve its financial performance.

Market Research Analyst

NRx Pharmaceuticals' decision to pursue a reverse stock split comes amidst what appears to be a contentious atmosphere, with mention of active campaigns to suppress voting. This context is important for understanding market sentiment and investor relations. A high turnout and overwhelming support for the resolution reflect that despite external pressures or negative campaigns, the investor base seems to align with the board's strategic vision.

From a market perspective, it's essential to monitor how this decision will be received once enacted. If the reverse stock split is perceived as a strategic move to strengthen the company's position, it could lead to positive market reception. Conversely, if the market views this as a last-ditch effort to stabilize stock price or comply with trading requirements, the reaction may not be as favorable. The company's communication strategy and subsequent performance updates will be critical in shaping investor perception post-implementation.

Legal Expert

The legal framework surrounding a reverse stock split involves regulatory compliance and adequate disclosure to shareholders and the market. NRx Pharmaceuticals will need to ensure that the final ratio selected for the reverse stock split is publicly announced and that all regulatory requirements are met. The mention of 'internet agents' attempting to suppress the vote introduces a layer of complexity regarding shareholder communication and potential manipulation.

Legally, the company must navigate these waters carefully, maintaining transparency and adhering to SEC regulations. The board's discretion in determining the split ratio indicates a level of flexibility in responding to market conditions, which must be balanced with shareholder interests and legal obligations to provide fair and timely information. The upcoming annual report will be a important document for stakeholders to assess the company's governance practices and strategic direction in light of this significant corporate action.

• 61.4% (56,781,354) of eligible shares voted
• 94.4% of votes were cast in favor of the resolution

RADNOR, Pa., March 21, 2024 /PRNewswire/ -- NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals", the "Company"), a clinical-stage biopharmaceutical company, today announced the results of the vote held during today's Special Meeting of Shareholders.

The meeting was called to vote on a proposal to give the Company's Board of Directors authority to effect a reverse stock split of all of the outstanding shares of NRx common stock at a ratio in the range of 1-for-2 to 1-for-15, with such ratio to be determined by the Board in its discretion and included in a public announcement, at a later date. Despite an active campaign by internet agents to suppress the vote, 61.4% (56,781,354) of all eligible shares were voted, with 94.4% (53,597,974) of votes cast in favor of the proposal.

"We deeply appreciate and respect the support of our shareholder base and look forward to continuing to bring hope to life," said Jonathan Javitt, MD, MPH, Founder, Chairman, and Chief Scientist of NRx Pharmaceuticals. "We thank our detractors on the internet and elsewhere who have campaigned tirelessly for our demise and, in the process, enabled our investors to recognize the potential lifesaving value of our technology. We look forward to sharing our annual report with shareholders on March 28 and to updating our investors on our ongoing progress."

About NRx Pharmaceuticals

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 has partnered with Alvogen and Lotus around the development and marketing of NRX-101 for the treatment of suicidal bipolar depression. 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 announced plans to submit a New Drug Application for HTX-100 (IV ketamine), through Hope Therapeutics, in 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.

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SOURCE NRx Pharmaceuticals, Inc.

What was the percentage of eligible shares that voted at the Special Meeting of Shareholders for NRx Pharmaceuticals, Inc.?

61.4% of eligible shares voted at the Special Meeting of Shareholders for NRx Pharmaceuticals, Inc.

What percentage of votes were cast in favor of the proposal at the Special Meeting of Shareholders for NRx Pharmaceuticals, Inc.?

94.4% of votes were cast in favor of the proposal at the Special Meeting of Shareholders for NRx Pharmaceuticals, Inc.

What was the purpose of the proposal voted on at the Special Meeting of Shareholders for NRx Pharmaceuticals, Inc.?

The proposal was to give the Company's Board of Directors authority to effect a reverse stock split of all outstanding shares of NRx common stock at a ratio in the range of 1-for-2 to 1-for-15.

Who is the Founder, Chairman, and Chief Scientist of NRx Pharmaceuticals, Inc.?

Jonathan Javitt, MD, MPH, is the Founder, Chairman, and Chief Scientist of NRx Pharmaceuticals, Inc.

When will NRx Pharmaceuticals, Inc. share its annual report with shareholders?

NRx Pharmaceuticals, Inc. will share its annual report with shareholders on March 28.