NRx Pharmaceuticals initiates strategy to combat short sales

NRx Pharmaceuticals initiated actions to combat short sellers in the company’s stock. The company announced a proposal to simultaneously change the CUSIP under which the company’s shares are traded, together with changing the name of the company to NRx Therapeutics. The company plans to accompany these actions with a required exchange of the underlying stock certificates. Any party holding a short position in the company’s shares who has not complied with the legal requirement to borrow the underlying shares of stock may be unable to exchange that position for a position in the new security. The company is working with attorneys who formerly served in leadership positions at the SEC Division of Enforcement to correspond with corporate counsel and compliance heads at brokerages to emphasize the current legal prohibitions against naked short sales.