CHAPEL HILL, NC – Tenax Therapeutics, Inc. (NASDAQ:TENX), a pharmaceutical company, announced an expansion of its stock incentive plan following a special meeting of stockholders. The approved amendment increases the number of shares authorized for issuance under its 2022 Stock Incentive Plan by 7,935,912 shares, bringing the total to 8,336,600 shares.
The decision took place at the special meeting held on Monday, with a definitive proxy statement filed on September 27, 2024, detailing the proposal. The Board of Directors initially approved the amendment on September 6, 2024, subject to stockholder approval.
The stockholders voted in favor of the amendment, with 1,176,335 shares for, 157,003 against, and 3,849 abstentions. Additionally, stockholders approved an adjournment proposal, allowing further solicitation and voting on proxies if necessary, with 1,194,879 shares for, 139,002 against, and 3,306 abstentions.
This expansion reflects Tenax Therapeutics' intent to increase the pool of shares available for employee incentives. The stock incentive plan is designed to attract, retain, and motivate employees, officers, and directors, and align their interests with those of the company's stockholders.
The full text of the amendment, referred to as Amendment No. 2 to the Tenax Therapeutics, Inc. 2022 Stock Incentive Plan, was filed as Exhibit 10.1 to the company's Current Report on Form 8-K. This information is based on a press release statement.
Tenax Therapeutics specializes in pharmaceutical preparations and operates under the organization name 03 Life Sciences. The company, formerly known as Oxygen Biotherapeutics, Inc., Synthetic Blood International Inc, and Sinequanon Corp, is incorporated in Delaware and headquartered in Chapel Hill, North Carolina.
In other recent news, Tenax Therapeutics has been the subject of several significant developments. The pharmaceutical company successfully raised approximately $100 million through a private placement, which was oversubscribed and led by new investor BVF Partners LP. The funds secured are expected to advance the Phase 3 development program for oral levosimendan, also known as TNX-103, a potential treatment for Pulmonary Hypertension Due to Heart Failure with Preserved Ejection Fraction.
Leerink Partners initiated coverage of Tenax Therapeutics, assigning an Outperform rating and setting a price target of $16.00 based on a discounted cash flow analysis. The firm's positive outlook for Tenax is largely attributed to TNX-103, which is currently in Phase 3 trials. Leerink Partners sees multibillion-dollar sales potential for TNX-103, with unadjusted worldwide sales for 2036 forecasted at $2.2 billion.
In addition to these financial developments, Tenax Therapeutics has made changes to its 2022 Stock Incentive Plan, increasing the number of shares authorized for issuance to a total of 400,688 shares. The company also transitioned its Chief Medical Officer, Dr. Stuart Rich, to a part-time role. Furthermore, Tenax secured a new U.S. patent for levosimendan, extending intellectual property protection for the drug and its metabolites through December 2040.
During its annual meeting, the company's shareholders elected directors for a one-year term expiring in 2025 and ratified Cherry Bekaert LLP as the independent registered public accounting firm for the year ending December 31, 2024.
InvestingPro Insights
Tenax Therapeutics' recent expansion of its stock incentive plan comes at a time when the company faces several financial challenges. According to InvestingPro data, TENX has a market capitalization of just $14.66 million, reflecting its status as a small-cap pharmaceutical company. The company's financial health appears precarious, with InvestingPro Tips indicating that TENX is not profitable over the last twelve months and net income is expected to drop this year.
Despite these challenges, there are some positive indicators. An InvestingPro Tip highlights that TENX holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current situation. Additionally, the company has shown strong returns over the last month and three months, with price total returns of 32.66% and 35.0% respectively, according to InvestingPro data.
The expansion of the stock incentive plan may be seen as a strategic move to attract and retain talent in a challenging environment. However, investors should note that the stock price has fallen significantly over the last year and five years, as pointed out by InvestingPro Tips. The company's price-to-book ratio stands at 1.65, which may be of interest to value-oriented investors.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for TENX, providing a deeper understanding of the company's financial position and market performance.
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