By Colin Kellaher
Shares of Tenax Therapeutics plunged by nearly two-thirds in premarket trading Thursday after the specialty pharmaceutical company said it was raising about $9 million in a dilutive public offering.
The Chapel Hill, N.C., company said it is selling 1.6 million shares, along with warrants to buy up to 3.2 million shares, at a combined price of $5.65 per share and associated warrants, well below Wednesday’s closing price of $14.26.
Tenax said the five-year warrants are exercisable immediately at a price of $5.65 a share.
Tenax in early January implemented a 1-for-80 reverse stock split that reduced its shares outstanding to fewer than 300,000, and the company’s share price has been volatile since then.
Tenax shares were recently down 65% to $5 in premarket trading after a nearly 25% run-up in Wednesday’s session.
Write to Colin Kellaher at [email protected]
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