Tenax Therapeutics Inc (TENX)

[Rumpelstilz]

Tenax-Aurum: Will Jebsen hamper Scottish IPO?
Concerning the Tenax-Aurum development deal for Oxycyte, Micheal B. Jebsen, CEO of Tenax, seems to be trying to hide the following facts from SEC and from shareholders:
1-Between Tenax and Aurum Biosciences, a brain imaging company near the Scottish State, a major development and commercialization deal has been in place for years (www.aurumbiosciences.com > Investor Information).
2-Tenax and Aurum are to develop Oxycyte (drug owned by Tenax) as a new therapy for stroke. Being this the only treatment for brain tissue in penumbra, this therapy has blockbuster potential (revenues > $1billion).
3-Aurum announced that it will take Oxycyte into a phase 2a trial in Q1 2018 (www.aurumbiosciences.com > News).
4-The Scottish Parliament officially acknowledged the Tenax-Aurum treaty and gave it it’s full backing (for details go to my posting #7583).

Large investment by Scottish State in Tenax-Aurum deal

Based on the Tenax-Aurum deal, which Mr. Jebsen is trying to hide, strong investment into Oxycyte has taken place provided for by the Scottish State. Most notable is the new Imaging Centre of Excellence (ICE) with a total cost of £32million, where the phase 2a trial with Oxycte is going to take place. The ICE is part of the University of Glasgow and the Queen Elizabeth University Hospital (QEUH), the largest acute hospital in Western Europe. Especially for the development of Oxycyte, the ICE bought a 7T MRI scanner (cost: £10million). When delivered in November 2016, the BBC reported: “Once it is installed and calibrated it will be used to research - and help treat - a variety of conditions such as stroke, vascular dementia, Alzheimer's disease and epilepsy.” (http://www.bbc.com/news/uk-scotland-glasgow-west-38123803). It is obvious that this account given by the BBC largely corresponds to Aurum’s pipeline for Oxycyte therapies. Go to aurumbiosciences.com > Investor Information and you will find the following pipeline description: “AURUM Biosciences Ltd is a clinical stage biopharmaceutical company developing novel oxygen carriers [i.e. Oxycyte] and proprietary software for use with MRI, initially for Acute Ischaemic Stroke (AIS), as well as a pipeline of other products. Target indications include heart disease, cancer, epilepsy, and dementia.”
Conclusion: there can be no doubt that huge investment by the Scottish State has taken place based on the Tenax-Aurum development deal for Oxycyte.

Is Mr. Jebsen a showable partner for Scottish IPO?

Aurum announced, that it has funding in place for a phase 2a trial with Oxycyte (www.aurumbiosciences >news). After this, new money must be organized, probably through an IPO. That means that Aurum and the involved Scottish State Institutions (ICE, QEUH, University of Glasgow) will start a major publicity campaign to attract the attention of British investors. These investors will, of course, ask questions about the reliability of Aurums partner Tenax, which owns and supplies Oxycyte. So what will these possible investors find out?
1- On Tenax’s homepage, not one single reference to Oxycyte can be found. The word simply does not show up. That means: Does Oxycyte exist after all? Where is it coming from? Who owns it? All that remains highly unclear. Question: Would you invest your money in such an unclear partnership, or is it better to keep away from Aurum’s IPO?
2-If an investor digs a little bit deeper, he finds out, that Michael B. Jebsen, CEO of tenax, is telling the SEC in his SEC FORM 10-K Commission File No. 001-34600 the following fancy story: “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.” Question: Would you invest your money in such an unclear partnership, or is it better to keep away from Aurum’s IPO?
3-If investors track the past of Tenax, they will find out that stock value has fallen from over $110 in 2010 to under 40 cents now. Question: Would you invest your money in such an unclear partnership, or is it better to keep away from Aurum’s IPO?
4-Investors are likely to find out, that reverse split hast already taken place twice, that Tenax is at the brink of delisting from NASDAQ, that another reverse split is planned by Michael B. Jebsen, and that more dilution is ahead to get the money for a probably chanceless Levosimendan trial. Question: Would you invest your money in such an unclear partnership, or is it better to keep away from Aurum’s IPO?
5-Investors will find out, that Michael B. Jebsen did not announce neither the conclusion of the important development deal for Oxycyte, nor the news of the upcoming phase 2a trial with Oxycyte, and that he personally deleted important information on the Tenax-Aurum deal from his homepage about two weeks ago. To find the deleted information, use Google with the words “Tenax, Pipeline, Oxycyte” and hit the cache button. Question: Would you invest your money in such an unclear partnership, or is it better to keep away from Aurum’s IPO?
6-Investors will find out, that all the above mentioned unclarity could easily be subject to a SEC investigation. Especially the forgetful and incomplete SEC filings are a huge theme, which will have to be fully explained to the SEC. As long as this theme is not cleared, it is not sure, whether Michael B. Jebsen is conducting Tenax's business according to the law. Question: Would you invest your money in such an unclear partnership, or is it better to keep away from Aurum’s IPO?

Will the Scotsmen clean the situation?

Considering the 6 points mentioned above, there can be no doubt, that Michael B. Jebsen is neither a showable nor a presentable partner for Scottish state institutions and that his presence could do great harm to the IPO Aurum seems to be planning. As long as Michael B. Jebsen is on board, such an IPO could fail. Therefore, the Scotsmen are likely to take some measures to clean the situation.
One thing is clear: Mr. Jebsen will not be able to prevent the ICE, QEUH, University of Glasgow, Aurum and the Scottish Parliament from going on with the development of Oxycyte, for which they signed a joint development treaty with Tenax and for with they invested considerable sums of State money. And Mr. Jebson is certainly not going to stop the further development of Oxycyte by telling the SEC in his filings, that no such development is taking place. The Scottish State will defend it’s interests, a phone call by the British Embassy to the SEC might do the job neatly.