Tenon Medical, Inc. Announces Closing of $4.5 Million Public Offering Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Tenon Medical, Inc. (NASDAQ:TNON), a company focused on sacroiliac joint disorders, has closed a $4.5 million public offering. The offering, priced at-the-market under Nasdaq rules, included 1,222,850 shares of common stock (or pre-funded warrants) and warrants to purchase up to 1,222,850 additional shares. The combined offering price was $3.68 per share and accompanying warrant. The warrants have an exercise price of $3.55 per share, are immediately exercisable, and will expire in five years. A.G.P./Alliance Global Partners acted as the sole placement agent for this offering, which was conducted under a Form S-1 registration statement.

Positive

• Successful closing of a $4.5 million public offering
• Offering priced at-the-market under Nasdaq rules
• Immediate cash infusion to support company operations
• Warrants provide potential for additional future funding

Negative

• Potential dilution of existing shareholders' equity
• Offering price of $3.68 per share may be below recent trading prices
• Additional shares from warrant exercise could further dilute ownership

Financial Analyst

Tenon Medical's $4.5 million public offering is a double-edged sword for investors. While it provides important capital for the company's operations in the competitive medical device market, it comes at the cost of significant dilution for existing shareholders. The offering price of $3.68 per share, being at-the-market, suggests investor enthusiasm. The inclusion of warrants with a $3.55 exercise price could lead to further dilution if exercised.

The single healthcare-focused institutional investor participation might indicate some confidence in Tenon's technology, but also raises questions about broader market interest. This capital injection should extend Tenon's runway, but investors should closely monitor the company's burn rate and progress in commercializing its SI Joint disorder treatments to assess long-term viability.

Medical Research Analyst

Tenon Medical's focus on sacroiliac joint disorders represents a niche but growing market. The $4.5 million raised could accelerate their R&D efforts and potentially expand their product pipeline. However, it's important to note that the SI joint treatment space is becoming increasingly competitive, with several players vying for market share.

Investors should keep an eye on Tenon's clinical data and FDA approvals to gauge their competitive edge. The company's ability to differentiate its technology and demonstrate superior outcomes will be key to capturing market share. While this funding provides a lifeline, Tenon needs to show substantial progress in patient outcomes and physician adoption to justify its valuation and secure future funding on better terms.

LOS GATOS, CA / ACCESSWIRE / September 17, 2024 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon" or the "Company"), a company transforming care for patients suffering with certain sacroiliac joint (SI Joint) disorders, today announced the closing of its previously announced "reasonable best efforts" public offering with a single health-care focused institutional investor for the purchase and sale of 1,222,850 shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to 1,222,850 shares of common stock at a combined offering price of $3.68 per share and accompanying warrant, priced at-the-market under Nasdaq rules (the "Offering"). The Company received aggregate gross proceeds of approximately $4.5 million, before deducting placement agent fees and other offering expenses. The warrants have an exercise price of $3.55 per share, are exercisable immediately and will expire five years from the issuance date.

A.G.P./Alliance Global Partners acted as the sole placement agent for the Offering.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-281531) previously filed with the Securities and Exchange Commission ("SEC") which was declared effective on September 12, 2024. This Offering was made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and the final prospectus, relating to the Offering may be obtained on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus relating to the Offering may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy 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 any such state or jurisdiction.

About Tenon Medical, Inc.

Tenon Medical, Inc., a medical device company formed in 2012, has developed The Catamaran SI Joint Fusion System that offers a novel, less invasive approach to the SI joint using a single, robust titanium implant. The system features the Catamaran™ Fixation Device which passes through both the axial and sagittal planes of the ilium and sacrum, stabilizing and transfixing the SI Joint along its longitudinal axis. The angle and trajectory of the Catamaran surgical approach is also designed to provide a pathway away from critical neural and vascular structures and into the strongest cortical bone. Since the national launch of the Catamaran SI Joint Fusion System in October 2022, Tenon is focused on three commercial opportunities with its System in the SI Joint market which includes: 1) Primary SI Joint procedures, 2) Revision procedures of failed SI Joint implants and 3) SI Joint fusion adjunct to a spine fusion construct. For more information, please visit https://www.tenonmed.com/.

Safe Harbor

This press release contains "forward-looking statements," which are statements related to events, results, activities or developments that Tenon expects, believes or anticipates will or may occur in the future. Forward-looking often contains words such as "intends," "estimates," "anticipates," "hopes," "projects," "plans," "expects," "seek," "believes," "see," "should," "will," "would," "target," and similar expressions and the negative versions thereof. These forward-looking statements, include, but are not limited to, statements regarding the the anticipated use of proceeds from the Offering. Such statements are based on Tenon's experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances, and speak only as of the date made. Forward-looking statements are inherently uncertain and actual results may differ materially from assumptions, estimates or expectations reflected or contained in the forward-looking statements as a result of various factors. For details on the uncertainties that may cause Tenon's actual results to be materially different than those expressed in any forward-looking statements, please review Tenon's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and updated from time to time in our Form 10-Q filings and in our other public filings on file with the SEC at www.sec.gov, particularly the information contained in the section entitled "Risk Factors." We undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise unless required by law.

IR Contact:

Shannon Devine: 203-741-8811
MZ North America
tenon@mzgroup.us

SOURCE: Tenon Medical, Inc.

View the original press release on accesswire.com

FAQ

What was the size of Tenon Medical's (TNON) recent public offering?

Tenon Medical (TNON) closed a public offering of approximately $4.5 million on September 17, 2024.

How many shares and warrants were issued in Tenon Medical's (TNON) offering?

The offering included 1,222,850 shares of common stock (or pre-funded warrants) and warrants to purchase up to 1,222,850 additional shares.

What was the pricing of Tenon Medical's (TNON) public offering?

The combined offering price was $3.68 per share and accompanying warrant, with the warrants having an exercise price of $3.55 per share.

Who was the placement agent for Tenon Medical's (TNON) public offering?

A.G.P./Alliance Global Partners acted as the sole placement agent for the offering.