TELA Bio Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

TELA Bio, Inc. announced the pricing of an underwritten public offering of 4,750,000 shares of its common stock at $9.50 per share, aiming for gross proceeds of $45.125 million. This offering will close on April 21, 2023, subject to customary closing conditions. Additionally, underwriters received a 30-day option for 712,500 additional shares. The funds will be utilized for general corporate purposes, including sales and marketing, research and development, and working capital. The offering is made under an effective shelf registration statement.

Positive

• Gross proceeds of $45.125 million for growth initiatives.
• Intended use of funds includes sales, marketing, and R&D to drive business expansion.

Negative

• Potential dilution of existing shareholders due to new share issuance.

MALVERN, Pa., April 18, 2023 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient’s own anatomy, today announced the pricing of its previously announced underwritten public offering of 4,750,000 shares of its common stock at a price to the public of $9.50 per share, for gross proceeds of $45.125 million, before deducting underwriting discounts and commissions and other estimated offering expenses. In addition, TELA has granted the underwriters a 30-day option to purchase up to an additional 712,500 shares of its common stock at the public offering price, less underwriting discounts and commissions. All shares of common stock are being offered by TELA. The offering is expected to close on or about April 21, 2023, subject to the satisfaction of customary closing conditions.

Jefferies, Piper Sandler, and Lake Street are acting as joint book-running managers for the offering.

TELA intends to use the net proceeds from the offering for general corporate purposes, including but not limited to sales and marketing, research and development activities, general and administrative matters, working capital and capital expenditures.

The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-251505) that was declared effective by the Securities and Exchange Commission (“SEC”) on December 29, 2020. A preliminary prospectus supplement relating to the offering has been filed with the SEC and a final prospectus supplement with the final terms of the offering will be filed with the SEC and will be available for free on the SEC’s website, located at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained, when available, from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, or by telephone at 877-821-7388, or by email at Prospectus_Department@Jefferies.com; or Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, or by telephone at (800) 747-3924, or by email at prospectus@psc.com; or Lake Street Capital Markets, LLC, Attention: Syndicate Department, 920 Second Avenue South, Suite 700, Minneapolis, Minnesota 55402, or by telephone at (612) 326-1305, or by email at syndicate@lakestreetcm.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.

About TELA Bio, Inc.

TELA Bio, Inc. is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy. The Company is committed to providing surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations are forward-looking statements and reflect the current beliefs of TELA's management. Such forward-looking statements include, without limitation, statements relating to the completion and use of proceeds of the public offering of common stock. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements including, among others: risks and uncertainties related to market conditions and the satisfaction of customary closing conditions related to the public offering, and other risks and uncertainties related to the public offering, as well as the risks and uncertainties set forth in the "Risk Factors" section and elsewhere in the prospectus supplement related to the public offering filed with the Securities and Exchange Commission and in our other filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K. Any forward-looking statements that we make in this announcement speak only as of the date of this press release, and TELA assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.

Investor Contact
Greg Chodaczek
347-620-7010
ir@telabio.com

FAQ

What is the pricing of TELA Bio's recent public offering?

TELA Bio's public offering is priced at $9.50 per share.

How many shares are included in TELA Bio's public offering?

The offering includes 4,750,000 shares, with an option for underwriters to purchase an additional 712,500 shares.

What are the intended uses of TELA Bio's offering proceeds?

Proceeds will be used for general corporate purposes, including sales, marketing, research, and development.

When is the expected closing date for TELA Bio's offering?

The offering is expected to close on April 21, 2023.

What are the risks associated with TELA's public offering?

Risks include potential dilution of existing shareholders and market conditions affecting the offering.