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Tenon Medical Announces Early Repayment of Its Convertible Notes

Tenon Medical has repaid $5.16 million of convertible notes early, aiming to avoid discounted share conversion and enhance financial flexibility.

(Very Positive)
Tags

Tenon Medical (TNON) has fully repaid its outstanding original issue discount senior convertible promissory notes with an aggregate principal balance of approximately $5.16 million, ahead of their September 11, 2026 maturity date.

The Notes were issued on March 11, 2026. The company states that the early repayment strengthens its balance sheet and removes the potential for the Notes to convert into common stock at a discount to market prices. Management describes the move as reducing potential shareholder dilution and preserving greater financial flexibility to invest in commercialization of its sacroiliac joint (SI Joint) fusion systems and broader growth initiatives.

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Positive

  • Early repayment of notes with ~$5.16 million principal, eliminating this debt before the September 11, 2026 maturity date
  • Removes potential discounted equity conversion by fully repaying senior convertible promissory notes
  • Management cites improved capital flexibility to support commercialization and growth initiatives after addressing the note obligations

Negative

  • None.

News Explained

The notes are fully repaid before maturity, removing their conversion path; as of June 30, 2026, Tenon reported $1.677 million in cash and equivalents against $2.758 million of second-quarter operating cash outflow—equal to 55.3 days at that rate.

Sources and calculations
  • Available liquidity against the last reported quarterly operating outflow, in days at that rate $1,677,000 / ($2,758,000 / 91) = 55.3 days
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+24.41% vs previous close $4.18 last price 396.2x rel. volume Open Argus
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Market Reaction – TNON

+29.7% Peak in 8 min
$3.20 $4.57 Day Range
$2.79M Market Cap

Following this news, TNON has gained 24.41%, reflecting a significant positive market reaction. Argus tracked a peak move of +29.7% during the session. Our momentum scanner has triggered 24 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $4.18. Trading volume is exceptionally heavy at 396.2x the average, suggesting very strong buying interest.

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Market Context

The March 16 filing described the notes' 20% original issue discount, 80% VWAP conversion price, and...
Analysis

The March 16 filing described the notes' 20% original issue discount, 80% VWAP conversion price, and 102.5% prepayment term; this repayment addressed that financing structure before maturity.

Key Figures

Notes principal balance: $5.16 million Maturity date: September 11, 2026 Issuance date: March 11, 2026
Notes principal balance
$5.16 million
Repaid in full before maturity
Maturity date
September 11, 2026
Original maturity date of the Notes
Issuance date
March 11, 2026
Date the Notes were issued

Historical Context

2 past events · Latest: Aug 31
2 events
  1. Aug 31

    Private placement closing

    24h Move
    -9.4%

    Closed institutional placement with common shares and warrants after prior financing announcement

  2. Aug 28

    Private placement pricing

    24h Move
    -0.4%

    Priced institutional placement with shares, pre-funded warrants, and accompanying warrants

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

original issue discount, convertible promissory notes, sacro-pelvic disorders, sacroiliac joint
4 terms
original issue discount financial
"outstanding original issue discount senior convertible promissory notes"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
convertible promissory notes financial
"outstanding original issue discount senior convertible promissory notes"
A convertible promissory note is a loan a company takes that can later be turned into shares instead of being paid back in cash; think of lending money now in exchange for a voucher that can become ownership later. Investors care because it mixes credit risk and potential ownership upside—it can protect lenders if a company struggles while also diluting existing shareholders when converted, affecting future share value and investor returns.
sacro-pelvic disorders medical
"patients with certain sacro-pelvic disorders"
Problems affecting the lower spine (sacrum) and the pelvic bones and their connecting joints and tissues, causing pain, weakness, nerve symptoms or difficulty walking and standing. Investors should care because these conditions can drive demand for medical devices, surgeries, drugs, rehabilitation services and long‑term care, much like a worn hinge that makes a door harder to open — affecting quality of life, treatment spending and workforce productivity.
sacroiliac joint medical
"treat a diseased sacroiliac joint"
The sacroiliac joint is the pair of joints that connect the base of the spine to the pelvis and act like built‑in shock absorbers, transferring weight between your upper body and legs with limited motion. When these joints hurt or malfunction they can cause chronic lower‑back or hip pain and become targets for implants, injections, diagnostics or physical‑therapy products, so developments affecting their treatment can change healthcare costs and market opportunities for investors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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~ Company Takes Proactive Step to Strengthen Balance Sheet and Maintain Flexibility to Execute on Continued Business Momentum ~

LOS GATOS, CA / ACCESS Newswire / September 9, 2026 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon" or the "Company"), a medical device company dedicated to transforming care for patients with certain sacro-pelvic disorders, today announced that it has repaid in full its outstanding original issue discount senior convertible promissory notes (the "Notes"), which were issued with an aggregate principal balance of approximately $5.16 million, ahead of their September 11, 2026 maturity date. The Notes were issued on March 11, 2026.

The repayment represents a proactive step to strengthen Tenon's balance sheet and eliminate the potential for the conversion of the Notes into shares of the Company's common stock at a discount to market prices.

"We believe repaying the Notes ahead of maturity is an important step forward for Tenon as we continue to build momentum across our business," said Steven M. Foster, President and Chief Executive Officer of Tenon Medical. "By proactively addressing this obligation, we are reducing potential dilution for our shareholders, strengthening our financial position and maintaining greater flexibility to invest in the continued commercialization of our products and expansion of our business."

Tenon believes its strengthened capital position provides the Company with the financial flexibility to support its ongoing commercial initiatives and advance its growth strategy. With its Note obligations now addressed, the Company is positioned to remain focused on executing its commercial plans, expanding adoption of its technologies and supporting continued investment in its growth opportunities.

About Tenon Medical, Inc.

Tenon Medical, Inc. is a medical device company dedicated to transforming care for patients with certain sacro-pelvic disorders. Tenon was incorporated in the State of Delaware in 2012 and currently offers two systems to treat a diseased sacroiliac joint (the "SI Joint"). The Company 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. In August 2025, the Company acquired substantially all of the assets of SiVantage, Inc. and SIMPL Medical, LLC, including the SImmetry+® SI Joint Fusion System, which treats disorders of the SI Joint through a minimally invasive lateral access solution that incorporates well-established orthopedic fusion principles. Since the national launch of The Catamaran System in October 2022, Tenon is focused on three commercial opportunities: 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 www.tenonmed.com. Information on the Company's website does not constitute a part of and is not incorporated by reference into this press release.

The Tenon Medical logo shown above, and Catamaran®, PiSIF®, CAT PiSIF®, ETAD®, Posterior Inferior Sacroiliac Fusion®, CAT SIJ Fusion System®, Catamaran SIJ Fusion System®, Catamaran Inferior Posterior Fusion System®, Catamaran Transfixation Fusion System®, Catamaran Transfixation Fusion Device®, SImmetry® are registered trademarks of Tenon Medical, Inc. MAINSAIL, and SImmetry+ are also trademarks of Tenon Medical, Inc.

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 statements often contain 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 anticipated use of proceeds from the July 2026 offering, the Company's ability to continue as a going concern, the Company's ability to regain and maintain compliance with Nasdaq listing requirements; its plans to raise additional capital on acceptable terms or at all, the expected benefits of the updated Catamaran SI Joint Fusion System, future product development, commercial expansion plans, cost structure improvements, and anticipated case volume growth. 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, 2025 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



View the original press release on ACCESS Newswire

FAQ

When were Tenon Medical’s repaid convertible notes originally issued and when were they due?

The senior convertible promissory notes were issued on March 11, 2026, with a scheduled maturity date of September 11, 2026. Tenon Medical has now repaid them in full before that maturity date.

What does Tenon Medical say is the main purpose of repaying the notes early?

The company states that early repayment is intended to strengthen its balance sheet, reduce potential dilution for shareholders by eliminating the possibility of discounted share conversion, and maintain greater financial flexibility to invest in commercialization and expansion of its sacroiliac joint technologies.

How does Tenon Medical describe its position after the note repayment?

Tenon Medical believes its strengthened capital position provides financial flexibility to support ongoing commercial initiatives, execute its commercial plans, expand adoption of its SI Joint fusion technologies, and continue investing in growth opportunities.

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