Tenax Therapeutics secures $25 million in private placement

CHAPEL HILL, N.C. - Tenax Therapeutics, Inc. (NASDAQ:TENX), a pharmaceutical company in the Phase 3 development stage focusing on cardiopulmonary treatments, has announced a securities purchase agreement for private placement financing. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 38.95 and is currently trading below its Fair Value, making it one of the potentially undervalued opportunities in the biotech sector. The deal with RTW Investments is set to bring in approximately $25 million in gross proceeds before deductions for placement agent fees and other expenses.

The private placement consists of 378,346 shares of common stock and pre-funded warrants for 3,760,726 shares, with the common stock priced at $6.04 per share and the pre-funded warrants at $6.03 each, having an exercise price of $0.01. The warrants can be exercised at any time after issuance without expiration. This financing comes as the stock has shown strong momentum, with InvestingPro reporting a remarkable 55.27% price return over the past six months.

This transaction, expected to close today, is contingent upon customary closing conditions. Leerink Partners is the lead placement agent, with Guggenheim Securities and William Blair as joint placement agents. With analyst price targets ranging from $7 to $30, significantly above current trading levels, investors seeking detailed analysis and additional insights can access more than 10 exclusive ProTips and comprehensive financial metrics through InvestingPro.

Tenax Therapeutics plans to allocate the net proceeds towards its ongoing and planned Phase 3 clinical trials, working capital, capital expenditures, and other general corporate purposes.

The securities offered in this private placement are in accordance with Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder. They have not been registered under the Securities Act or the securities laws of any state or jurisdiction and are not available for sale within the United States without registration or an exemption from the registration requirements.

The company has committed to filing a registration statement with the SEC for the resale of the shares issued in the private placement and the shares issuable upon the exercise of the pre-funded warrants within 45 days post-closing.

This press release is not an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

The information provided is based on a press release statement from Tenax Therapeutics, Inc.

In other recent news, Tenax Therapeutics announced the appointment of Gillian Andor as Vice President of Clinical Operations. Andor brings over 20 years of experience in clinical operations, having previously held significant roles at Noema Pharma and Sage Therapeutics. Her expertise was instrumental in the successful NDA submissions and approvals for treatments of CNS disorders. At Ironwood Pharmaceuticals, she played a key role in clinical studies that led to the approval of Linzess® for IBS-C. Andor’s appointment comes as Tenax Therapeutics advances patient enrollment in its Phase 3 LEVEL study for oral levosimendan, targeting pulmonary hypertension due to heart failure with preserved ejection fraction. In connection with her new role, Andor received an inducement equity award, consisting of an option to purchase 250,000 shares of Tenax’s common stock. The award will vest over four years, contingent upon her continued employment with the company. This strategic hiring is part of Tenax’s ongoing efforts to address cardiovascular and pulmonary diseases with high unmet medical needs.

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