The special purpose acquisition company (SPAC) Big Rock Partners Acquisition Corp. (BRPA) flew 8.78% up on Friday to end the week at $58.74. The surge in the stock could be linked to recent developments by the companies with which NeuroRx, Inc. is in collaboration.
Big Rock recently announced a merger agreement with a clinical-stage, small molecule pharmaceutical company NeuroRx, a success achieved by the SPAC after actively looking for a target since its market inception in 2017. As part of the agreement, Big Rock will take NeuroRx to the market for a public listing.
For the treatment of bipolar disorder, NeuroRx produces new therapeutics such as NRX-100, 101 and for COVID-19 it develops RLF-100 or ZYESAMI (aviptadil). Big Rock and NeuroRx will combine in the terms of the merger and the business is likely to proceed to operate under the symbol “NRXP” on the Nasdaq Stock Index. The transaction is expected to take effect in the first half of 2021. NeuroRx claims to have expanded access to funding as a public Nasdaq-listed firm to continue the advancement of its groundbreaking drug pipeline pursuing Central Nervous System (CNS)/Psychiatry and Respiratory Disease.
Under the terms of the agreement, Big Rock will issue a total of 50 million shares of Big Rock common stock to NeuroRx’s existing equity investors for their NeuroRx rights, comprising $500 million of equity compensation, at a valuation of $10.00 per common share.
Subject to such terms, a maximum of 25 million additional shares of Big Rock common stock will be given to holders of NeuroRx pre-merger equity when RLF-100 receives emergency usage authorization from the FDA prior to 31 December 2022 and secondly when the FDA approves the Company’s filing of its RLF-100 clearance application.
Also, NeuroRx pre-merger stock investors can earn $100 million cash earnings pursuant to such restrictions, either in case of FDA approves the Company’s COVID-19 Medication prior to December 31, 2022, and the Company’s COVID-19 Drug become listed in the FDA’s Orange Book or the authority approves Antidepressant Drug Regime the Company and that become listed in the FDA’s Orange Book.