Tenax Therapeutics (NASDAQ:TENX) stock is falling hard on Thursday after the pharmaceutical company announced details for a public offering of its shares.
That public offering has Tenax Therapeutics selling 1.6 million units. Each of these units contains one share of TENX stock and warrants to acquire another 3.2 million shares. They are being sold for $5.65 each. The warrants also have an exercise price that matches this.
Tenax Therapeutics is expecting the offering to generate $9,040,000 million in gross proceeds. It intends to use these funds to cover the costs of its Phase 3 trial of oral levosimendan. The company will also use the money for working capital, capital expenditures and general corporate purposes.
What This Means for TENX Stock
A public offering increases the total number of TENX shares available on the public market. Doing that also dilutes the stakes of current shareholders in the company. It makes sense that such an action would upset TENX stockholders today.
Adding to that is the pricing of the public stock offering. The company’s $5.65 per share price is a significant discount compared to its prior closing price of $14.26 per share. This is another likely reason for TENX stock slipping today.
TENX stock is down 64.2% as of Thursday morning and was down 31.4% year-to-date when markets closed on Wednesday.
Investors looking for more of the most recent stock market stories are in the right place!
We have all of the hottest stock market news that traders need to know about on Thursday! That includes everything happening with Jin Medical International (NASDAQ:ZJYL) stock, CCSC Technology (NASDAQ:CCTG) stock and Hitek Global (NASDAQ:HKIT) stock today. You can find out more on these matters down below!
More Stock Market News for Thursday
- Why Is Jin Medical International (ZJYL) Stock Moving Today?
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- Why Is Hitek Global (HKIT) Stock Up 518% Today?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.