Tenon Medical Inc. saw its stock fall 2.5% on Tuesday after the company revealed details of a new private funding round worth $2.85 million.
The medical device company, which focuses on treatments for sacro-pelvic disorders, said it will issue about 2.22 million shares of its common stock along with warrants to buy an equal number of shares. Each share and warrant together will be priced at $1.285. The warrants can be exercised at $1.16 per share and will remain valid for three years.
Tenon said the funding round includes participation from key industry partners and members of its own management team, which it believes shows strong confidence in the company’s long-term goals and strategy.
The money raised will be used for working capital and general business needs. This includes funding new product launches, expanding sales operations, supporting clinical studies, and continuing to invest in core business activities.
Since the securities are being sold through a private investment in public equity, or PIPE, they are not registered under the Securities Act of 1933. This means they cannot be sold publicly in the U.S. unless they are later registered with the SEC or qualify for an exemption. The deal will be completed once all standard closing conditions are met.