NRX Pharmaceuticals (NASDAQ:NRXP) shares are trading sharply lower in after-hours trading on Tuesday.

NRXP shares fell 19.05% to $3.74 in after-hours trading after the company announced a proposed underwritten public offering of common stock.

NRx Pharmaceuticals is a clinical-stage biopharmaceutical company focused on developing treatments for central nervous system disorders, including suicidal depression, bipolar depression and post-traumatic stress disorder (PTSD). The company has filed an ANDA and initiated an NDA filing for NRX-100, its preservative-free intravenous ketamine therapy.

Proposed Public Offering

The company announced that it intends to offer shares of its common stock in an underwritten public offering. NRx also expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares sold in the offering.

The offering remains subject to market and other conditions, and the company said there can be no assurance regarding the timing, size or final terms of the transaction.

BTIG LLC (formerly Bay Tree Investment Group) is acting as the lead bookrunner for the offering. As the primary investment bank managing the transaction, BTIG is responsible for marketing the offering to investors, gauging demand, assisting with pricing and coordinating the sale of shares.

Lucid Capital Markets LLC, serving as joint bookrunning manager, is assisting BTIG in distributing the shares, identifying potential investors and supporting the execution of the offering.

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Use Of Proceeds

NRx Pharmaceuticals said it intends to use the net proceeds from the offering for working capital and general corporate purposes to support its growth initiatives.

Public stock offerings often pressure share prices because they can increase the number of outstanding shares and dilute existing shareholders’ ownership stakes.

Trading Analysis

NRx Pharmaceuticals currently has a market capitalization of approximately $167.38 million, with a 52-week high of $5.06 and a 52-week low of $1.62.

The stock is up 69.85% over the past 12 months.

Price Action

According to market data, NRXP closed Tuesday’s regular trading session at $4.62. Shares fell 19.05% in after-hours trading to $3.74.

Benzinga Edge Stock Rankings indicate that NRXP shares currently maintain positive short, medium and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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