Morrisville’s Tenax Therapeutics to raise $8M in PIPE offering

MORRISVILLE – The publicly-traded Tenax Therapeutics, Inc. is seeking to raise $8 million in capital through a private investment in public equity offering.

The offering, abbreviated as PIPE, comes as the company announced it had entered an agreement with “a single healthcare-focused institution investor.”

That investor, unnamed by the company, will buy 10,596,027 “units” at a set purchase price of $0.755 per unit. In total, 21,192,054 shares of the company’s stock underlie the warrants involved in the PIPE deal, the company statement noted.

“A traditional PIPE agreement lets investors purchase common stock or preferred stock that is convertible to common shares at a predetermined price or exchange rate,” according to Investopedia. “If the business is merged with another or sold soon, investors may be able to receive dividends or other payoffs.”

Tenax expects to use the $8 million in procees “to further its clinical trials of levosimendan and imatinib, for research and development and for general corporate purposes, including working capital,” it said in the statement.

In connection with this offering, the company amended other warrants it had previously issued.

The company bought an Illinois-based firm in early 2021, and brought in a new chief executive in July 2021, and later that month, closed $10 million.