NRx Pharmaceuticals Faces Lawsuit Over Failed Kadima Acquisition
NRXP has more than doubled off its 52-week low of $1.62.
Summary
NRx Pharmaceuticals is disputing claims from Kadima Neuropsychiatry Institute after a planned acquisition of Kadima by NRx's subsidiary, Hope Therapeutics, fell apart. Kadima has filed a lawsuit alleging breach of contract and misrepresentation, claiming NRx used the deal to boost its share price. NRx asserts Kadima failed to meet closing conditions and that the deal was not in the best interest of its shareholders. This legal dispute adds a new layer of risk for NRx, which recently reported a 'going concern' warning and completed a dilutive public offering in May and June.
At the time of this announcement, NRXP was trading at $3.62 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $149.3M. The 52-week trading range was $1.62 to $5.06. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.