TELA Bio Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

TELA Bio, Inc. has announced a public offering of its common stock, with underwriters given a 30-day option to purchase an additional 15% of the shares. The offering is subject to market conditions and may vary in size and terms. TELA intends to use the proceeds for general corporate purposes, including sales and marketing, research and development, and working capital. The offering will be conducted under a shelf registration statement effective since December 29, 2020. Jefferies, Piper Sandler, and Lake Street are joint book-running managers. This press release does not serve as an offer to sell or a solicitation for purchase of these securities.

Positive

• Proceeds from the offering will support growth in sales and marketing, research and development, and working capital.
• The underwriters' option to purchase additional shares could indicate strong market interest.

Negative

• The announcement of a public offering may lead to share dilution for existing shareholders.
• Market conditions may affect the completion and terms of the offering, introducing uncertainty.

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 that it has commenced an underwritten public offering of shares of its common stock. In addition, TELA expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock to be sold in the proposed offering at the public offering price, less underwriting discounts and commissions. All shares of common stock are being offered by TELA. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the proposed offering.

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

TELA intends to use the net proceeds from the proposed 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 proposed 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 and accompanying prospectus relating to the proposed 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 preliminary prospectus supplement and the accompanying prospectus relating to the proposed 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, timing, size, and use of proceeds of the proposed 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 proposed public offering, and other risks and uncertainties related to the proposed public offering, as well as the risks and uncertainties set forth in the "Risk Factors" section and elsewhere in the preliminary prospectus supplement related to the proposed 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 TELA Bio's recent stock offering?

TELA Bio has announced a public offering of its common stock, with a potential to issue an additional 15% of shares within 30 days.

Why is TELA Bio conducting a public offering?

The company aims to use the net proceeds for general corporate purposes, including sales, marketing, R&D, and working capital.

Who are the underwriters for TELA Bio's public offering?

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

What are the potential risks associated with TELA Bio's stock offering?

The offering could result in share dilution for existing shareholders and is subject to market conditions, creating uncertainty.

When was the shelf registration for TELA Bio's offering declared effective?

The shelf registration statement became effective on December 29, 2020.