Crispr Therapeutics shares tumble after significant earnings miss
CHAPEL HILL, N.C. - Tenax Therapeutics, Inc. (NASDAQ:TENX), a development-stage pharmaceutical company, announced today that it has secured approximately $100 million through an oversubscribed private placement financing. The transaction, led by new investor BVF Partners LP, included participation from other new investors such as Venrock Healthcare Capital Partners and Vivo Capital.
The private placement, which is expected to close on August 8, 2024, subject to customary closing conditions, will involve the sale of 1,450,661 shares of common stock and pre-funded warrants to purchase 31,882,671 shares of common stock.
Accompanying warrants to purchase an additional 16,666,666 shares of common stock were also part of the deal, with the purchase price set at $3.00 per share and accompanying warrant. The pre-funded warrants, exercisable at any time post-issuance, were priced at $2.99 each, with an exercise price of $0.01.
The capital raised is earmarked for advancing Tenax Therapeutics' ongoing Phase 3 LEVEL trial, which studies Levosimendan in patients with pulmonary hypertension and heart failure with preserved ejection fraction (PH-HFpEF), as well as initiating a second planned Phase 3 trial of oral Levosimendan.
Moreover, funds will be allocated for working capital, capital expenditures, and other general corporate purposes. The company anticipates that the proceeds, combined with current cash reserves, will fund operations through the end of 2027.
Leerink Partners acted as the lead placement agent for the private placement, with Guggenheim Securities and William Blair as joint placement agents. ROTH Capital Partners served as financial advisor to Tenax Therapeutics.
The securities issued in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Tenax Therapeutics has committed to filing a registration statement with the SEC to allow the resale of the shares issued in the private placement and the shares issuable upon exercising the warrants, within 30 days following the placement's close.
This announcement is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, Tenax Therapeutics has announced several significant corporate developments. Top of the list is the amendment to its 2022 Stock Incentive Plan, increasing the number of shares authorized for issuance by 400,000, bringing the total to 400,688 shares. The company also modified the employment agreement with its Chief Medical Officer, Dr. Stuart Rich, transitioning him to a part-time role with an adjusted annual base salary from its current $333,900.
In addition to these changes, Tenax has secured a new U.S. patent for its cardiovascular drug levosimendan, extending intellectual property protection for the drug and its metabolites through December 2040. This patent covers the drug's use in treating pulmonary hypertension with heart failure with preserved ejection fraction (PH-HFpEF) in various forms and also provides protection for its active metabolites and its use in combination with other cardiovascular drugs.
During the annual meeting, shareholders elected directors for a one-year term expiring in 2025 and ratified the appointment of Cherry Bekaert LLP as the company's independent registered public accounting firm for the year ending December 31, 2024. These recent developments reflect Tenax's ongoing commitment to governance and compensation practices aligned with shareholder interests.
InvestingPro Insights
In light of Tenax Therapeutics' recent announcement about securing substantial funding through private placement, InvestingPro offers relevant data and insights into the company's financial health and stock performance. Notably, Tenax Therapeutics holds more cash than debt on its balance sheet, which could provide a level of financial stability as it advances its clinical trials. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong position to meet its immediate financial commitments.
However, investors should be aware of the challenges the company faces. Tenax Therapeutics has struggled with weak gross profit margins and is not expected to be profitable this year, as indicated by analysts. Furthermore, its stock price has been quite volatile, recently trading near its 52-week low and showing a significant decline over the last year. This could reflect market sentiment about the company's near-term prospects.
From a valuation standpoint, Tenax Therapeutics has a market capitalization of $5.72 million and a Price/Book ratio as of the last twelve months of Q1 2024 at 0.46, which might suggest the stock is undervalued relative to its assets. However, the negative P/E Ratio of -0.57 for the same period indicates that the company has been operating at a loss.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available on the InvestingPro platform, providing deeper insights into Tenax Therapeutics' financials and market performance. Visit https://www.investing.com/pro/TENX for further details and to explore the full range of tips and data points offered.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.