Tenax Therapeutics Inc (TENX)

[Rumpelstilz]

Scottish State money involved in Tenax-Aurum deal
In his SEC filings, Tenax’s CEO & CFO Michael B. Jebsen states that Tenax is not developing Oxycyte (a PFC product), and that Oxycyte is of no importance for the future business. SEC FORM 10-K Commission File No. 001-34600 reads as follows: “As we have suspended the development of these PFC products (…), we do not expect that Oxycyte, Dermacyte or Wundecyte constitute a material portion of our business going forward.” In strong contrast to this SEC filing, several Scottish State institutions confirm, that a huge development project for Oxycyte has been underway for years. To push forward the joint development of Oxycyte, Tenax Therapeutics and Aurum Biosciences (a research company near the Scottish State) set up a major research, development and commercialization deal (details: www.aurumbiosciences.com > Investor Information). In Q1 2018, the two companies are going to take their development project into a phase 2a trial (www.aurumbiosciences.com > news). Important Scottish State institutions are involved:
1-The Scottish Parliament gave it’s backing to the joint development activities of Tenax and Aurum. Parliament motion S4M-14835 states that the Scottish Parliament “encourages the continued relationship between Aurum Biosciences and Tenax Therapeutics to provide for Aurum Biosciences to further develop Oxycyte.” (for details go to my posting #7583)
2-The University of Glasgow confirms that £1,816,033 in funding is in place for the years 2017-2018 designated to the following project: “GOLD imaging in acute stroke: further technology development incorporating a perfluorocarbon oxygen carrier (Oxycyte).” (Google the following words: “GEMRIC grant funding oxycyte”).
3-The Scottish Wellcome Trust lists among the projects that receive it’s funding the following project: “GOLD imaging in acute stroke: further technology development incorporating a perfluorocarbon oxygen carrier (Oxycyte)”. (https://wellcome.ac.uk/what-we-do/directories/health-innovation-challenge-fund-projects-funded)

Aurum is nexus between Tenax and Scottish State

Let’s therefore have a quick look at these Scottish State institutions and their role in the joint Tenax-Aurum development project for Oxycyte.
Over the last few years, the Scottish State has built a new MRI Centre, the Imaging Centre of Excellence (ICE). The £32million ICE facilities offer modern medical imaging technology, most notably in the area of brain imaging, and are connected to the £1billion Queen Elizabeth University Hospital (QEUH) in Glasgow, the largest acute hospital in Western Europe. The Centre’s facilities include a £10million, ultra-high resolution 7T MRI scanner. The most important research project at the ICE is led by Aurum Biosciences - a spin-out from NHS Greater Glasgow & Clyde and the University of Glasgow. Aurum received funding of over £3million mostly form the Scottish Wellcome Trust to develop a new stroke imaging therapy based on Oxycyte. Aurum was set up as a private company, largely because it is not possible to directly use Scottish state money for the development of a privately-owned drug like Oxycyte. Aurum is thus primarily a legal framework, that makes it possible for the Scottish State to invest money into the development of an Oxycyte based therapy - the “real” partners of Tenax being, of course, not Aurum but the ICE, QEUH, NHS Greater Glasgow & Clyde, Scottish Wellcome Trust and the University of Glasgow. That’s why the Scottish Parliament takes such a keen interest in the Tenax-Aurum development deal for Oxycyte (see my posting #7583): Scottish state money is at stake!

Are the Scottish State institutions to help with the SEC?

And now we are faced with a tricky problem. The Scottish State probably does not want to be caught – well, how shall one put it without becoming ironical – in bed with something that might be mistaken for a whore or a thief – if officially investigated. No, no, no! Instead, the Scottish State probably wants its partners to be neat and tidy. But as long as Tenax's CEO Michael B. Jebsen goes on producing SEC filings that maintain that no joint Tenax-Aurum development project is taking place, and that Oxycyte does not represent a material portion of Tenax’s business going forward, an investigation might be triggered. Such an investigation could – albeit nobody who knows Michael B. Jebsen well, would consider that a possible outcome - bring to light some forgetfulness or even untidiness. Furthermore, it must look strange to the Scotsmen that their long development partnership with Tenax does not show up on Tenax’s homepage anymore, simply because Mr. Jebsen deleted that information shortly after Aurum announced the upcoming phase 2a trial with Oxycyte. To find the deleted information, use Google with the words “Tenax, Pipeline, Oxycyte” and hit the cache button. Thus, the Scottish State institutions probably and possibly are beginning to think about how they could best help Michael B. Jebsen to make the scent of his company's SEC statements more shining, fresh and fragrant. Being generous people, the Scotsmen are likely to grant Mr. Jebsen much more help than just providing him with a new toothbrush.