Tenon Medical Inc. (NASDAQ:TNON) saw its stock climb 3.4% in premarket trading on Friday after the company announced it had formally closed its previously disclosed at-the-market private investment in public equity (PIPE) transaction.
The medical device company, which develops solutions for sacro-pelvic conditions, secured roughly $2.85 million in gross proceeds through the sale of 2,217,904 common shares bundled with warrants to purchase an equal number of shares. The combined offering price for each share-and-warrant unit was set at $1.285.
The accompanying warrants carry an exercise price of $1.16 per share and will remain valid for three years from issuance. Both the newly issued shares and the warrant-underlying shares include standard resale registration rights.
Tenon Medical said the funds will support working capital needs and general corporate initiatives, including upcoming product launches, expansion of its commercial footprint, further clinical development efforts, and ongoing investment in core operations.
The company noted that the PIPE securities were issued under an exemption and are not registered under the Securities Act of 1933, meaning they cannot be sold in the U.S. without SEC registration or an eligible exemption.