Tenax Therapeutics (NASDAQ:TENX) stock is on the rise following the announcement of the successful completion of an oversubscribed private placement. The company is expecting to raise $100 million in gross proceeds from this private placement, which will be used to fund its Phase 3 LEVEL trial, initiate a second Phase 3 trial, and for general purposes.
The private placement was led by new investor BVF Partners LP, along with several other investors, and includes 1,450,661 shares of TENX stock as well as warrants for additional shares.
TENX Stock Warrants Breakdown
The warrants issued consist of two groups. The first group includes pre-funded warrants for 31,882,671 shares, while the second group includes warrants for another 16,666,666 shares. The purchase price for these shares and warrants was $3, with an exercise price of $4.50 per share.
The pre-funded warrants are immediately exercisable and do not have an expiration date, while the other warrants are subject to certain conditions. These conditions include the exercise of the holder’s pre-funded warrants, 30 days after the reporting of topline results from the Phase 3 LEVEL trial, or five years after the closing date of the private placement.
As of Tuesday morning, TENX stock is up 29.9%.
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More Stock Market News for Tuesday
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Analysis:
The completion of the oversubscribed private placement by Tenax Therapeutics has led to a surge in its stock price, with expectations of $100 million in gross proceeds. This influx of funds will support the company’s ongoing Phase 3 trials and future research initiatives. Investors should keep an eye on the developments in the company’s trials and potential market impact as more news unfolds.