Tenon Medical, Inc. Announces Pricing 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 announced the pricing of a $4.5 million public offering. The offering includes up to 1,222,850 shares of common stock (or pre-funded warrants) and warrants to purchase up to 1,222,850 shares at a combined price of $3.68 per share and accompanying warrant. The warrants have an exercise price of $3.55 per share, are immediately exercisable, and expire in five years. The offering, priced at-the-market under Nasdaq rules, is expected to close around September 16, 2024. Tenon plans to use the net proceeds for commercial activity, working capital, and general corporate purposes. A.G.P./Alliance Global Partners is acting as the sole placement agent for this offering.

Positive

• Secured $4.5 million in gross proceeds through public offering
• Offering priced at-the-market under Nasdaq rules, potentially indicating fair market value
• Funds to be used for commercial activity and working capital, potentially supporting growth

Negative

• Potential dilution for existing shareholders due to new share issuance
• Warrants could lead to further dilution if exercised in the future

Financial Analyst

Tenon Medical's $4.5 million public offering is a double-edged sword for investors. While it provides necessary capital for commercial activities and operations, it comes at the cost of significant dilution. The offering price of $3.68 per share is substantially below the current market price, indicating a weak financial position. The inclusion of warrants with a $3.55 exercise price could lead to further dilution if exercised.

The company's reliance on a single healthcare-focused institutional investor raises questions about broader market confidence. This "reasonable best efforts" offering structure suggests demand, potentially reflecting concerns about Tenon's business model or market prospects in the SI Joint disorder space. Investors should closely monitor the company's ability to effectively utilize this capital to drive growth and achieve profitability in the competitive medical device market.

Medical Research Analyst

Tenon Medical's focus on sacroiliac joint disorders represents a niche market opportunity within orthopedics. However, the need for additional funding suggests challenges in market penetration or product adoption. The $4.5 million raised may be insufficient for substantial R&D or large-scale commercialization efforts, potentially limiting the company's ability to compete effectively against larger, well-funded medical device manufacturers.

Investors should scrutinize Tenon's clinical data, reimbursement status and market acceptance of their SI Joint treatment solutions. The success of this offering in driving commercial activities will be important in validating the company's technology and market strategy. Keep an eye on upcoming clinical results or regulatory milestones that could justify this capital raise and potentially improve the company's market position.

09/12/2024 - 09:30 PM

LOS GATOS, CA / ACCESSWIRE / September 12, 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 pricing of its "reasonable best efforts" public offering with a single health-care focused institutional investor for the purchase and sale of up to 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 expects to receive aggregate gross proceeds of approximately $4.5 million, before deducting placement agent fees and other offering expenses, and assuming no exercise of the warrants. The warrants will have an exercise price of $3.55 per share, will be exercisable immediately and will expire five years from the issuance date.

The closing of the Offering is expected to occur on or about September 16, 2024, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from this Offering for commercial activity, working capital and general corporate purposes.

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

The securities described above are being 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 is being made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and, when available, copies of 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, when available, 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 completion of the Offering, the satisfaction of customary closing conditions related to the Offering and the anticipated use of proceeds therefrom. 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 is the size and price of Tenon Medical's (TNON) public offering announced on September 12, 2024?

Tenon Medical (TNON) announced a $4.5 million public offering priced at $3.68 per share and accompanying warrant, consisting of up to 1,222,850 shares of common stock (or pre-funded warrants) and warrants to purchase up to 1,222,850 shares.

When is the expected closing date for Tenon Medical's (TNON) public offering?

The closing of Tenon Medical's (TNON) public offering is expected to occur on or about September 16, 2024, subject to customary closing conditions.

How does Tenon Medical (TNON) plan to use the proceeds from its September 2024 public offering?

Tenon Medical (TNON) intends to use the net proceeds from the offering for commercial activity, working capital, and general corporate purposes.

What are the terms of the warrants included in Tenon Medical's (TNON) September 2024 public offering?

The warrants in Tenon Medical's (TNON) offering have an exercise price of $3.55 per share, are exercisable immediately, and will expire five years from the issuance date.