Shares of Tenon Medical, a micro-cap company that makes implants for sacroiliac joint fusion, surged over 71% on Friday, September 13. This came off a gain of 44% a day earlier. The trigger was the announcement of plans to launch a new, more compact implant, while the company has also disclosed a secondary offering and private placement.
Details
Tenon Medical stock soared 71.6% on the Nasdaq on Friday from just over $3.00 to $7.55 per share before extending the gains in after-hours trading, when the share price rose another 12.4%. Before the bell today, Monday, September 16, Tenon Medical was up another 23% at $9.30 per share. The company’s market capitalization now stands at $3.73 million.
On Friday, Tenon announced plans to release a new version of its Catamaran implant in the fourth quarter. It is designed for sacroiliac joint fusion, a procedure that stabilizes the joint connecting the pelvis to the spine. According to the company, the width of the new implant has been reduced by 30%, allowing doctors to use it in cases with limited space or smaller joint anatomy.
Other news
The big rally in Tenon began on Thursday, September 12, when the stock jumped 44%. The day before, the company had announced plans to regain compliance with the Nasdaq minimum float requirement by offering new shares, reported Seeking Alpha. It has been in violation of the requirement since a reverse stock split on September 6.
On Friday, September 13, the company also disclosed the pricing for a previously announced private placement: it will offer up to 1.2 million shares at $3.68 per share, along with five-year warrants exercisable at $3.55. It expects to raise $4.5 million from the placement, before fees, which is to be used for commercial activity and working capital.
On Thursday and Friday, 37.5 million and 24.5 million Tenon shares changed hands, respectively — significantly above the daily average trading volume of a million shares.
According to MarketWatch, the two analysts covering the company both have a buy recommendation, with a target price of $28 per share.
