Why Tenax Therapeutics (TENX) Stock Is Getting Obliterated
Portfolio Pulse from Henry Khederian
Tenax Therapeutics Inc (NASDAQ:TENX) shares plummeted 64.3% to $5.08 after announcing a public offering of 1.6 million shares and warrants to purchase up to 3.2 million shares at $5.65 each. The offering aims to raise about $9.04 million, with Roth Capital Partners as the placement agent. Funds will support the LEVEL trial and general corporate purposes. The offering is expected to close by February 12. TENX does not pay dividends but engages in capital allocation programs. It has a 52-week high of $118.40 and a low of $4.81.
February 08, 2024 | 4:20 pm
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NEGATIVE IMPACT
Tenax Therapeutics' stock price plummeted following the announcement of a public offering at a price lower than its current trading value, aiming to raise funds for its LEVEL trial and general corporate purposes.
The significant drop in TENX's stock price is directly related to the announcement of a public offering at a price lower than its recent trading levels. This dilutes existing shareholders' value and indicates the company is seeking funds, which can be perceived negatively by the market. The funds are earmarked for the advancement of their LEVEL trial and general corporate purposes, which is critical for the company's future but does not immediately mitigate the negative impact of dilution.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100