Why Tenax Therapeutics (TENX) Stock Is Getting Obliterated

Tenax Therapeutics Inc TENX shares are trading lower by 64.3% to $5.08 Thursday morning after the company announced the pricing of a public offering involving the sale of 1.6 million shares of its common stock and warrants to purchase up to 3.2 million shares.

The offering is priced at $5.65 per share and associated warrant, with the warrants having an exercise price of $5.65 per share. The offering is expected to generate approximately $9.04 million in gross proceeds. Roth Capital Partners is serving as the exclusive placement agent for the offering.

The company intends to utilize the net proceeds to advance its LEVEL trial, a Phase 3 trial of oral levosimendan, as well as for general corporate purposes. The offering is anticipated to close around February 12, pending customary closing conditions.

See Also: Meta’s $50 Billion Buyback — Is It Good? Bad?

Is TENX A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Tenax Therapeutics‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Tenax Therapeutics TENX does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 16.41%, you'll need to buy a share of Ellington Residential by the 28th February, 2024. Once done, you can expect to receive a nominal payout of $0.08 on 25th March, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Tenax Therapeutics will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, TENX has a 52-week high of $118.40 and a 52-week low of $4.81.