Tenax Therapeutics Inc (TENX)

[Rumpelstilz]

Why reverse split? Are Tenax’s shareholders misled?
Information on Tenax’s pipeline (Oxycyte, drug owned by Tenax) and its development programs (Oxycyte, in cooperation with the Scottish company Aurum Biosciences) remains very unclear. Therefore, the real value of the company is unknown, and shareholders can’t take well informed investment decisions.

On the one hand, there is Tenax’s management telling the SEC in its FORM 10-K Commission File No. 001-34600, that development of Oxycyte has been suspended and that Oxycyte is of no importance for Tenax’s future business. The text reads as follows: “As we have suspended the development of these PFC products while we evaluate strategic alternatives, we do not expect that Oxycyte, Dermacyte or Wundecyte constitute a material portion of our business going forward.” (http://secfilings.nasdaq.com/edgar_conv_html%2f2017%2f03%2f16%2f0001654954-17-002098.html#FIS_BUSINESS).

On the other hand, there is the Scottish brain imaging company Aurum Biosciences, that is part of an important development program by Scottish State institutions (Imaging Centre of Excellence, University of Glasgow, Queen Elizabeth University Hospital). Aurum Biosciences informs its investors: “Aurum also signed a major research, development and commercialization deal with its US partner, Tenax Therapeutics, to develop Oxycyte, initially in the lead stroke indication. Tenax has granted Aurum full rights to develop and commercialize the product. Under the terms of this deal, the companies will share the benefits in stroke" (www.aurumbiosciences.com > Investor Information). Aurum has announced that it will take Oxycyte into a phase 2a trial in Q1 2018 (www.aurumbiosciences.com > News).

Reverse split is very suspicious

Both facts – the Tenax-Aurum development deal for Oxycyte as well as the upcoming phase 2a trial with Oxycyte – have been and are being hidden by Tenax’s management. One wonders, in what kind of hidden agenda Tenax’s CEO Michael B. Jebsen is involved. Is he trying to mislead Tenax’s shareholders and the SEC? Now he is proposing a reverse split to prevent delisting of Tenax from NASDAQ. It is unusual and very suspicious, that a company loses value and shall need a reverse split exactly in the moment, where a promising blockbuster drug development is entering its phase 2a trial.

So there remains one question: Why does Tenax’s CFO and interim CEO, the honest and honorable Mr. Michael B. Jebsen, hide these crucial facts from shareholders and the SEC, and how long will it take for shareholders and the SEC to find out and ask questions?

Post Scriptum:
Shortly after Aurum Biosciences announced the upcoming phase 2a trial for Oxycyte, Tenax's CEO Michael B. Jebsen deleted all information on Oxycyte and the Tenax-Aurum development deal from Tenax's homepage. To make the deleted information reappear, use the following Webarchive link: https://web.archive.org/web/20170723172111/http://www.tenaxthera.com/pipeline/oxycyte/