WallachBeth Capital Announces Closing of Tenon Medical, Inc Private Placement of Senior Original Issue Discount Convertible Notes Offering for Gross Proceeds of $4.3 Million

Tenon Medical (NASDAQ:TNON) closed a private placement of senior original-issue-discount convertible notes, raising $4.3 million aggregate gross proceeds.

Rhea-AI Summary

Tenon Medical (NASDAQ:TNON) closed a private placement of senior original-issue-discount convertible notes, raising $4.3 million aggregate gross proceeds.

The 20% OID notes mature on September 11, 2026 and are convertible after six months into common stock at a conversion price equal to 80% of the 3-day VWAP prior to conversion. Net proceeds will fund commercial expansion, product development, clinical studies, working capital and general corporate purposes.

Positive

• Raised $4.3M gross proceeds through convertible notes
• Proceeds earmarked for commercial expansion, product development, and clinical studies
• Placement agent secured institutional and high-net-worth investors

Negative

• Notes convert at an effective 20% discount, creating potential dilution
• Short maturity (Sept 11, 2026) increases near-term refinancing risk

Argus Mar 12 session

-0.11% close to close Open Argus

Details

News Market Reaction – TNON

On Mar 12, the day this news came out, TNON closed 0.11% below the previous close.

Data tracked by StockTitan Argus for the Mar 12 session.

Key Figures

Gross proceeds: $4.3 million Original issue discount: 20% Aggregate principal: $4.3 million +3 more

Gross proceeds

$4.3 million

Senior convertible promissory notes private placement

Original issue discount

20%

Senior convertible notes

Aggregate principal

$4.3 million

Senior original issue discount notes

Maturity date

September 11, 2026

Senior convertible promissory notes

Conversion price discount

80% of VWAP

VWAP of prior 3 Trading Days before conversion

Lookback window

3 Trading Days

VWAP period for conversion price calculation

Previous Private placement,offering Reports

2 past events · Latest: Mar 25

Same Type 2 events

1. Mar 25

   Registered direct offering

   24h Move

   -35.5%

   $2.5M registered direct and concurrent warrants priced at-the-market.

2. Mar 25

   Private placement offering

   24h Move

   +283.4%

   Announced $1.5M registered direct and private placement with 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, private placement, vwap, +3 more

7 terms

original issue discount financial

"The 20% original issue discount notes have an aggregate principal amount..."

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

"private placement of senior convertible promissory notes with several institutional..."

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.

private placement financial

"private placement of senior convertible promissory notes with several institutional..."

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

vwap technical

"conversion price equal to 80% of the VWAP for the three (3) Trading Days..."

VWAP, or Volume-Weighted Average Price, is a way to find the average price of a stock throughout the trading day, giving more importance to times when more shares are traded. It helps traders see the typical price and decide whether a stock is expensive or cheap compared to its average, similar to finding the average speed during a trip by giving more weight to times when you traveled faster or slower.

form 8-k regulatory

"will be available in the Company's Current Report on Form 8-K, which will be filed..."

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

registration statement regulatory

"may not be offered or sold in the United States or any state absent registration or an applicable exemption..."

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

exemption from registration regulatory

"absent registration or an applicable exemption from registration requirements."

Exemption from registration means that certain financial instruments or offerings are not required to go through a formal registration process with regulatory authorities. This can make it easier and faster for companies to raise money or offer securities to investors. For investors, it matters because it may affect how much information is available about the investment and the level of oversight involved.

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

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JERSEY CITY, N.J., March 12, 2026 /PRNewswire/ -- WallachBeth Capital LLC, a leading provider of capital markets and institutional execution services, announces the closing of Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon" or the "Company"), private placement of senior convertible promissory notes with several institutional and high net worth investors for aggregate gross proceeds of $4.3 million before deducting fees of the placement agent.

The 20% original issue discount notes have an aggregate principal amount of $4.3 million with a maturity date of September 11, 2026 and are convertible, following the six month anniversary of the issuance date, into shares of the Company's common stock at a conversion price equal to 80% of the VWAP for the three (3) Trading Days immediately prior to the date of conversion, subject to adjustment as provided therein.

The Company expects to use the net proceeds from the offering for commercial expansion, product development, clinical studies, working capital and general corporate purposes.

WallachBeth Capital, Inc. acted as the placement agent in connection with the offering.  Sichenzia Ross Ference Carmel LLP acted as legal counsel to the Company and Sheppard, Mullin, Richter and Hampton LLP acted as counsel to the placement agent.

The notes and the shares issuable upon the conversion of the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and, until so registered, may not be offered or sold in the United States or any state absent registration or an applicable exemption from registration requirements.

Additional details regarding the notes and the transaction will be available in the Company's Current Report on Form 8-K, which will be filed with the U.S. Securities and Exchange Commission and available at www.sec.gov.

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 WallachBeth Capital LLC:

WallachBeth Capital offers a robust range of capital markets and investment banking services to the healthcare community, connecting corporate clients with leading institutions, supporting issuers and investors in achieving their financial goals. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, and private transactions and ATM's.

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," "aims," and similar expressions and the negative versions thereof. 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 our actual results to be materially different than those expressed in our forward-looking statements, please review our Annual Report on 10-K and other reports on file with the Securities and Exchange Commission 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/wallachbeth-capital-announces-closing-of-tenon-medical-inc-private-placement-of-senior-original-issue-discount-convertible-notes-offering-for-gross-proceeds-of-4-3-million-302712283.html

SOURCE WallachBeth Capital LLC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Tenon Medical (TNON) announce on March 12, 2026 about the financing?

Tenon Medical raised $4.3 million via senior OID convertible notes. According to the company, the offering carries a 20% original issue discount and will support commercial, clinical and corporate needs.

What are the conversion terms for TNON's March 2026 convertible notes?

The notes convert after six months at a price equal to 80% of the 3-day VWAP prior to conversion. According to the company, conversion is subject to adjustment as provided in the note agreement.

When do TNON's convertible notes mature and what is the timeline for conversion?

The notes mature on September 11, 2026 and become convertible following the six-month anniversary. According to the company, conversion eligibility begins after that six-month period.

How does the TNON financing affect existing shareholders and dilution risk?

Conversion at an effective 20% discount may dilute existing shareholders if notes convert to common stock. According to the company, shares issuable upon conversion are not yet registered under the Securities Act.

Where can investors find more details about Tenon Medical's (TNON) private placement?

Detailed terms will be included in the company's Form 8-K filed with the SEC. According to the company, the Form 8-K will provide additional transaction specifics and legal disclosures.