As filed with the Securities and Exchange Commission
on May 4, 2023
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Tenon
Medical, Inc.
(Exact name of registrant as specified in its charter)
| Delaware |
|
3841 |
|
45-5574718 |
|
(State or Other Jurisdiction of
Incorporation or Organization) |
|
(Primary Standard Industrial
Classification Code Number) |
|
(I.R.S. Employer
Identification No.) |
104 Cooper Court
Los Gatos, CA 95032
(408) 649-5760
(Address, including zip code, and telephone number,
including area code,
of registrant’s principal executive offices)
Steven M. Foster
Chief Executive Officer and President
Tenon Medical, Inc.
104 Cooper Court
Los Gatos, CA 95032
(408) 649-5760
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
Copies to:
| Ross D. Carmel, Esq. |
| Jeffrey P. Wofford, Esq. |
| Carmel, Milazzo & Feil LLP |
| 55 West 39th Street, 4th Floor |
| New York, New York 10018 |
| Telephone: (212) 658-0458 |
Approximate date of commencement of proposed
sale to the public: From time to time after this registration statement becomes effective.
If the only securities being registered on this
form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ¨
If any of the securities being registered on this
form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, as amended (the “Securities
Act”), other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. x
If this form is filed to register additional securities
for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. ¨
If this form is a post-effective amendment filed
pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of
the earlier effective registration statement for the same offering. ¨
If this form is a registration statement pursuant
to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant
to Rule 462(e) under the Securities Act, please check the following box. x
If this form is a post-effective amendment to
a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities
pursuant to Rule 413(b) under the Securities Act, please check the following box. ¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer |
¨ |
|
Accelerated filer |
¨ |
| Non-accelerated filer |
x |
|
Smaller reporting company |
x |
| |
|
|
Emerging growth company |
x |
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section
8(a), may determine.
EXPLANATION OF THE FILING
This shelf registration statement will provide
our company with the flexibility to issue and sell securities if and when deemed appropriate and in the best interest of our stockholders.
We may or may not issue and sell any securities under this registration statement. Filing this registration statement merely gives us
flexibility to issue registered securities if and when we deem doing so is appropriate and in the best interest of our stockholders, without
any unnecessary delays. This registration statement helps us maintain an optimal state of readiness at all times.
This registration statement contains two prospectuses:
| · | a base prospectus that covers the potential offering, issuance, and sale from time to time of our common
stock, preferred stock, warrants, debt securities, and units in one or more offerings with a total value of up to $50,000,000; and |
| · | a sales agreement prospectus covering the potential offering, issuance,
and sale from time to time of shares of our common stock having an aggregate gross sales price of up to $6,700,000 pursuant to a equity
distribution agreement with Maxim Group LLC. |
The base prospectus immediately follows this explanatory note. The specific
terms of any securities to be offered pursuant to the base prospectus will be specified in a prospectus supplement to the base prospectus.
The equity distribution agreement prospectus, which specifies the terms of our common stock to be sold under the equity distribution agreement,
immediately follows the base prospectus. The common stock that may be offered, issued, and sold under the equity distribution agreement
prospectus is included in the $50,000,000 of securities that may be offered, issued, and sold under the base prospectus. Upon termination
of the equity distribution agreement, any portion of the $6,700,000 included in the sales agreement prospectus that is not sold pursuant
to the sales agreement will be available for sale in other offerings pursuant to the base prospectus.
The information in this
prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities
and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy
these securities in any state or other jurisdiction where the offer or sale is not permitted.
Subject to Completion,
dated May 4, 2023
PRELIMINARY PROSPECTUS
$50,000,000
Tenon Medical, Inc.
Common Stock
Preferred Stock
Warrants
Debt Securities
Rights
Units
This prospectus will allow us to issue, from time
to time at prices and on terms to be determined at or prior to the time of the offering, up to $50,000,000 of any combination of the securities
described in this prospectus, either individually or in units. We may also offer common stock or preferred stock upon conversion of or
exchange for the debt securities; common stock upon conversion of or exchange for the preferred stock; common stock, preferred stock or
debt securities upon the exercise of warrants, rights or performance of purchase contracts; or any combination of these securities upon
the performance of purchase contracts.
This prospectus describes the general terms of
these securities and the general manner in which these securities will be offered. We will provide you with the specific terms of any
offering in one or more supplements to this prospectus. The prospectus supplements will also describe the specific manner in which these
securities will be offered and may also supplement, update or amend information contained in this document. You should read this prospectus
and any prospectus supplement, as well as any documents incorporated by reference into this prospectus or any prospectus supplement, carefully
before you invest.
Our securities may be sold directly by us to you,
through agents designated from time to time or to or through underwriters or dealers. For additional information on the methods of sale,
you should refer to the section entitled “Plan of Distribution” in this prospectus and in the applicable prospectus supplement.
If any underwriters or agents are involved in the sale of our securities with respect to which this prospectus is being delivered, the
names of such underwriters or agents and any applicable fees, commissions or discounts and over-allotment options will be set forth in
a prospectus supplement. The price to the public of such securities and the net proceeds that we expect to receive from such sale will
also be set forth in a prospectus supplement.
Pursuant to General Instruction I.B.6 of Form S-3, in no event will we
sell our securities in public primary offerings with a value exceeding more than one-third of our public float in any 12-month period
so long as our public float remains below $75.0 million. As of May 4, 2023, the aggregate market value of our outstanding common stock
held by non- affiliates, or public float, was approximately $20,208,990, based on 7,742,908 shares of our outstanding common stock that
were held by non-affiliates on such date and a price of $2.61 per share, which was the price at which our common stock was last sold on
the Nasdaq Capital Market on March 16, 2023, calculated in accordance with General Instruction I.B.6 of Form S-3. We have not offered
any securities pursuant to General Instruction I.B.6 of Form S-3 during the twelve-month period that ends on and includes the date hereof.
Our common stock is listed on The Nasdaq Capital Market under the symbol “TNON.”
On May 3, 2023, the last reported sale price of our common stock was $1.84
per share. The applicable prospectus supplement will contain information, where applicable, as to any other listing, if any, on The Nasdaq
Capital Market or any securities market or other securities exchange of the securities covered by the prospectus supplement. Prospective
purchasers of our securities are urged to obtain current information as to the market prices of our securities, where applicable.
Investing in our securities involves a high
degree of risk. Before deciding whether to invest in our securities, you should consider carefully the risks that we have described on
page 6 of this prospectus under the caption “Risk Factors.” We may include specific risk factors in supplements to this prospectus
under the caption “Risk Factors.” This prospectus may not be used to sell our securities unless accompanied by a prospectus
supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
Currently, we are an “emerging growth
company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and are subject to reduced public company reporting
requirements. Please read “Implications of Being an Emerging Growth Company.”
You should read carefully and consider the
“Risk Factors” referenced on page 6 of this prospectus, as well as those contained in the applicable prospectus supplement
and in the documents that are incorporated by reference herein or the applicable prospectus supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus.
Any representation to the contrary is a criminal offense.
The date of this prospectus is May __, 2023.
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement
that we filed with the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities
Act”), using a “shelf” registration process for the delayed offering and sale of securities pursuant to Rule 415 under
the Securities Act. Under the shelf process, we may, from time to time, sell any of the securities described in this prospectus in one
or more offerings and selling security holders may offer such securities owned by them from time to time.
This prospectus provides you with a general description
of the securities we may offer. Each time we or selling security holders sell securities, we will provide one or more prospectus supplements
that will contain specific information about the terms of the offering. The prospectus supplement may also add, update, or change information
contained in this prospectus. You should read both this prospectus and the accompanying prospectus supplement together with the additional
information described under the heading “Where You Can Find More Information.”
We have not authorized anyone to provide you with
any additional information. This prospectus and any accompanying prospectus supplement do not constitute an offer to sell or the solicitation
of an offer to buy any securities other than the securities described in the accompanying prospectus supplement or an offer to sell or
the solicitation of an offer to buy such securities in any circumstances in which such offer or solicitation is unlawful. You should assume
that the information appearing in this prospectus, any prospectus supplement, the documents incorporated by reference, and any related
free writing prospectus is accurate only as of their respective dates. Our business, financial condition, results of operations, and prospects
may have changed materially since those dates.
As used in this prospectus, unless the context
otherwise requires, the terms “we,” “us,” “our,” and “our company” mean, collectively,
Tenon Medical, Inc. and its subsidiaries.
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
This prospectus, the documents incorporated by
reference herein and therein, and other written and oral statements we make from time to time contain certain “forward-looking”
statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). You can identify these forward-looking statements by the fact they use words such as “could,”
“expect,” “anticipate,” “estimate,” “target,” “may,” “project,”
“guidance,” “intend,” “plan,” “believe,” “will,” “potential,”
“opportunity,” “future,” and other words and terms of similar meaning and expression in connection with any discussion
of future operating or financial performance. You can also identify forward-looking statements by the fact that they do not relate strictly
to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties,
including factors that could delay, divert, or change any of them, and could cause actual outcomes to differ materially from current expectations.
These statements are likely to relate to, among other things, our business strategy, our research and development, our product development
efforts, our ability to commercialize our product candidates, the activities of our licensees, our prospects for initiating partnerships
or collaborations, the timing of the introduction of products, the effect of new accounting pronouncements, uncertainty regarding our
future operating results and our profitability, anticipated sources of funds as well as our plans, objectives, expectations, and intentions.
We have included more detailed descriptions of
these risks and uncertainties and other risks and uncertainties applicable to our business that we believe could cause actual results
to differ materially from any forward-looking statement in the “Risk Factors” sections of this prospectus and the documents
incorporated by reference herein including, but not limited to, the risk factors incorporated by reference from our filings with the SEC.
We encourage you to read those descriptions carefully. Although we believe we have been prudent in our plans and assumptions, no assurance
can be given that any goal or plan set forth in forward-looking statements can be achieved. We caution investors not to place significant
reliance on forward-looking statements; such statements need to be evaluated in light of all the information contained and incorporated
by reference in this prospectus. Furthermore, the statements speak only as of the date of each document, and we undertake no obligation
to update or revise these statements.
This summary highlights selected information
that is presented in greater detail elsewhere, or incorporated by reference, in this prospectus. It does not contain all of the information
that may be important to you and your investment decision. Before investing in our securities, you should carefully read this entire prospectus,
including the matters set forth in the section titled “Risk Factors” and the financial statements and related notes and other
information that we incorporate by reference herein, including our Annual Report on Form 10-K
Introduction
Tenon Medical, Inc. (the “Company”),
was incorporated in the State of Delaware on June 19, 2012 and was headquartered in San Ramon, California until June 2021 when it relocated
to Los Gatos, California. The Company is a medical device company that offers a novel, less invasive approach to the sacroiliac joint
using a single, robust, titanium implant for treatment of the most common types of sacroiliac joint (the “SI-Joint”) disorders
that cause lower back pain. The system features the CATAMARAN™ Fixation Device which passes through both the axial and sagittal
planes of the ilium and sacrum, stabilizing and transfixing the SI joint along its longitudinal axis. The angle and trajectory of the
Catamaran surgical approach is also designed to provide a pathway away from critical neural and vascular structures and into the strongest
cortical bone. The Company received U.S. Food and Drug Administration (“FDA”) clearance in 2018 for The CATAMARANTM
SI-Joint Fusion System (“The CATAMARAN System”). The Company commercially launched The CATAMARAN System nationally in October
2022 at the North American Spine Society meeting held in Chicago. Currently, the Company’s only commercial focus is the US market.
The Opportunity
We estimate that over 30 million American
adults have chronic lower back pain.
Published clinical studies have shown that 15%
to 30% of all chronic lower back pain is associated with the SI-Joint. For patients whose chronic lower back pain stems from the Sacroiliac
Joint (“SI-Joint”), our experience in both clinical trials and commercial settings indicates The CATAMARAN System could be
beneficial for patients who are properly diagnosed and screened for surgery by trained healthcare providers.
In 2019, approximately 475,000 patients in the
United States were estimated to have received an aesthetic injection to temporarily alleviate pain emanating from the SI-Joint and/or
to diagnose SI-Joint pain. Additionally, several non-surgical technologies have been introduced in the past 10 years to address patients
who do not respond to injection therapy, including systemic oral medications and opioids.
To date, the penetration of a surgical solution
for this market has been relatively low (5-7%). We believe this is due to complex surgical approaches and suboptimal implant design of
existing options. The penetration of this market with an optimized surgical solution is Tenon’s focus.
We believe the SI-Joint is the last major joint
to be successfully addressed by the orthopedic implant industry. Studies have shown that disability resulting from disease of the SI-Joint
is comparable to the disability associated with a number of other serious orthopedic conditions, such as knee and hip arthritis and degenerative
disc disease, each of which has surgical solutions where an implant is used, and a multi-billion-dollar market exists.
The SI-Joint
The SI-Joint is a strong weight bearing synovial
joint situated between the lumbar spine and the pelvis and is aligned along the longitudinal load bearing axis of the human spine when
in an upright posture. It functions as a force transfer conduit where it transfers axial loads bi-directionally from the spine to the
pelvis and lower extremities and allows forces to be transmitted from the extremities to the spine. It also provides load sharing between
the hip and spine to contribute towards attenuation of impact shock and stress from activities of daily living.
The SI-Joint is a relatively immobile joint that
connects the sacrum (the spinal segment that is attached to the base of the lumbar spine at the L5 vertebra) and the ilium of the pelvis.
Each SI-Joint is approximately 2mm wide and irregularly shaped.
Motion of the SI-Joint features vertical shear
and rotation. Although the rotational forces about the SI-Joint are relatively low, repetitive motions created by daily activities such
as walking, jogging, twisting at the hips, and jumping can increase the stresses on the SI-Joint. If the SI-Joint is compromised through
injury or degeneration, the load bearing and motion restraints from the surrounding anatomical structures of the SI-Joint will be compromised
resulting in abnormal stress transfers across the joint to these structures, thereby further augmenting the degenerative cascade of the
SI-Joint. Eventual pain and cessation of an individual’s normal activities due to a painful and unstable SI-Joint have led to an
increase in the recent development of SI-Joint stabilization devices.
Non-Surgical Treatment of Sacroiliac Joint
Disease
Several non-surgical treatments exist for suspected sacroiliac
joint pain. These conservative steps often provide desired relief for the patient. Non-surgical treatments include:
: including opiates and non-steroidal anti-inflammatory
medications.
: which can involve exercises as well
as massage.
| · | Intra-Articular Injections of Steroid Medications |
: which are typically performed by physicians
who specialize in pain treatment or anesthesia.
: or the cauterizing of the lateral branches
of the sacral nerve roots.
When conservative steps fail to deliver sustained
pain relief and return to quality of life, specific diagnostic protocols are utilized to explore if a surgical option should be considered.
Diagnosis
Historically, diagnosing pain from the SI-Joint
was not routinely a focus of orthopedic or neurosurgery training during medical school or residency programs. Due to its invasiveness,
post-operative pain, and muscle disruption along with a difficult procedure overall, the open SI-Joint fusion procedure was rarely taught
in these settings.
The emergence of various SI-Joint surgical technologies
has generated a renewed discussion of SI-Joint issues. Of particular focus is the diagnostic protocol utilized to properly select patients
for S-I Joint surgery. Patients with low back pain typically start with primary care physicians who often refer to pain specialists. Here,
the patient will go through traditional physical therapy combined with oral medications (anti-inflammatory, narcotic, etc.). If the patient
fails to respond to these steps the pain specialist may move to therapeutic injections of the SI-Joint. These injections may serve to
lessen inflammation to the point that the patient is satisfied. However, the impact from these injections is often transient. In this
case the patient is often referred to a trained physician to determine if the patient may be a candidate for surgical intervention. A
series of provocative tests in clinic, combined with a specific injection protocol to isolate the SI-Joint as the pain generator is then
utilized to confirm the need for surgical intervention. Published literature has shown this technique to be a very effective step to determine
the best treatment to alleviate pain.
Limitations of Existing Treatment Options
Surgical fixation and fusion of the SI-Joint with
an open surgical technique was first reported in 1908, with further reports in the 1920s. The open procedure uses plates and screws, requires
a 6 to 12-inch incision and is extremely invasive. Due to the invasiveness and associated morbidity, the use of this
procedure is limited to cases involving significant trauma, tumor, etc.
Less invasive surgical options along with implant
design began to emerge over the past 15 years. These options feature a variety of approaches and implant designs and have been met with
varying degrees of adoption. Lack of a standard and accepted diagnostic approach, complexity of approach, high morbidity of approach,
abnormally high complication rates and inability to radiographically confirm fusion have all been cited as reasons for low adoption of
these technologies.
The CATAMARAN™ SI-Joint Fusion System
Solution
Until October 2022 Tenon sold The CATAMARAN™
SI-Joint Fusion System (“The CATAMARAN System”) to a limited number of clinician advisors to refine the product for a full
commercial launch. In October 2022 Tenon initiated a full commercial launch at the NASS meeting in Chicago. The CATAMARAN System includes
instruments and implants designed to prepare and fixate the SI-Joint for fusion. We believe The CATAMARAN System will address a large
market opportunity with a superior product and is distinct from other competitive offerings in the following ways:
| · | Inferior Posterior Sacroiliac Fusion Approach |
| · | Reduced Approach Morbidity |
| · | Direct And Visualized Approach to the SI-Joint |
| · | Single Implant Technique |
| · | Insertion Trajectory Away from the Neural Foramen |
| · | Insertion Trajectory Away from Major Vascular Structures |
| · | Autologous Bone Grafting in the Ilium, Sacrum and Bridge |
| · | Radiographic Confirmation of Bridging Bone Fusion of the SI-Joint |
The fixation device and its key features are shown
below:
 |
Key
Features
“Pontoon”
in the ilium
“Pontoon”
in the sacrum
“Pontoons
and Bridge” filled with autologous bone from drilling process
Leading
edge osteotome creates defect and facilitates ease of insertion |
The CATAMARAN System is a singular implant designed
with several proprietary components which allow for it to be explicitly formatted to transfix the SI-Joint with a single approach and
implant. This contrasts with several competitive implant systems that require multiple approach pathways and implants to achieve fixation.
In addition, the Inferior Posterior approach is designed to be direct to the joint and through limited anatomical structures which may
minimize the morbidity of the approach. The implant features a patented dual pontoon open cell design which enables the clinician to pack
the pontoons with the patient’s own autologous bone designed to promote bone fusion across the joint. The CATAMARAN System is designed
specially to resist vertical shear and rotation of the joint in which it was implanted, helping stabilize the joint in preparation for
eventual fusion.
The instruments we have developed are proprietary
to The CATAMARAN System and specifically designed to facilitate an Inferior Posterior approach that is unique to the system.
Tenon also has developed a proprietary 2D placement
protocol as well as a protocol for 3D navigation utilizing the latest techniques in spine surgery. These Tenon advancements are intended
to further enhance the safety of the procedure and encourage more physicians to adopt the procedure.
The CATAMARAN System, as mentioned previously,
is placed in the densest aspect of the SI-Joint as confirmed by the pre-op planning images below:
 |
|
Surgical Plan Key:
Yellow: Guidewire
Purple: Lateral Pontoon (Ilium)
Green: Medial Pontoon (Sacrum)
|
| |
|
| |
Notes:
Upper Right Quadrant: The green and purple pontoons represent the placement
in the dense bone inferior – contrasted with the dorsal gap superiorly where competitive systems are most often placed.
Lower Right Quadrant: The yellow and purple outlines
represent The CATAMARAN System pontoons, illustrating the angle of insertion is away from the sacral neuro foramen providing
for a much safter trajectory for device implantation. |
The Procedure
We believe The CATAMARAN System and its differentiated
characteristics allow for an efficient and effective procedure designed to deliver short-term stabilization and long-term fusion that
can be confirmed radiographically. Shown below is an illustration demonstrating the unique placement of The CATAMARAN System inserted
Inferior Posterior and coming directly down to and transfixing the joint
 |
|
 |
The CATAMARAN System procedure is typically performed
under general anesthesia using a specially designed instrument set we provide to prepare for the Inferior Posterior access to the SI-Joint.
Specially designed imaging and navigation protocols are designed to ensure the clinician has the proper Entry Point, Trajectory, Angle
and Depth (ETAD™) so that the pontoons of The CATAMARAN System are placed for maximum fixation. The CATAMARAN System incorporates
two pontoons and is designed so that when the system is impacted into the bone one pontoon is on the Illum side and the other is in the
Sacrum side with the bridge spanning the joint, preventing shear and rotation of the joint. The device also features an open cell design
where the patient’s own (autologous) bone is packed into the pontoons and the bridge to facilitate fusion across the joint. The
leading edge of the bridge is designed to act as an osteotome, providing a self-created deficit upon insertion. These features are designed
to create an ideal environment for bone ingrowth and fusion. Below is a fluoroscopic image of an implanted CATAMARAN Fixation Device spanning
the SI-Joint.
Tenon believes the surgical approach and implant
design it has developed, along with the 2D and 3D protocols for proper implantation will be received well by the clinician community who
have been looking for a next generation device. Our initial clinical results indicate that The CATAMARAN System is promoting fusion across
the joint as evidenced by post-op CT scans (the recognized gold standard widely accepted by the Clinical community).
Post-Op
fluoroscopic image of
implant spanning the SI-Joint |
|
6-Month
CT-Scan showing clear
bridging bone fusion |
 |
|
 |
A preliminary 18 case series (Michael Joseph Chaparro,
MD, F.A.A.N.S., F.A.C.S.) has documented that The CATAMARAN System does in fact promote fusion across the SI-Joint, which many of our
competitors have not been able to demonstrate. While products from some of our competitors use screws and triangular wedges to treat the
SI-Joint, most do not effectively resist the vertical shear and twisting within the joint. This 18 patient series was presented at the
North American Spine Society Annual Meeting in Chicago, IL in October 2022.
An independent biomechanical study (Lisa Ferrara,
Ph.D. OrthoKinetic Technologies, LLC now part of Element) demonstrated that a single CATAMARAN SIJ Fixation Device was superior to predicate
device in the areas of Fixation Strength, Shear Stiffness, Dynamic Endurance and Pullout Strength. We hold issued patents on The CATAMARAN
System and its unique features including the dual pontoons and the open cell structure for bone graft packing. We also hold an issued
patent for the method of placing The CATAMARAN System into the SI-Joint where one pontoon is in the ilium and the other in the sacrum.
The CATAMARAN System’s unique design has
already demonstrated radiographically confirmed fusion in initial patients. We believe that this beneficial advantage along with a simpler,
safer, and less painful procedure will make this the procedure of choice for most physicians. Tenon has initiated post market, IRB controlled
clinical trials to demonstrate this technology delivers on these advantages.
Corporate Information
Our principal executive offices are located at
104 Cooper Court, Los Gatos, California 95032. Our website address is www.tenonmed.com. The information included on our website or in
any social media associated with the Company is not part of this prospectus.
Implications of Being an Emerging Growth Company
We are an “emerging growth company,”
as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We will remain an emerging growth company
until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common stock
pursuant to an effective registration statement under the Securities Act; (ii) the last day of the fiscal year in which we have total
annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during
the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules. We expect
that we will remain an emerging growth company for the foreseeable future, but cannot retain our emerging growth company status indefinitely
and will no longer qualify as an emerging growth company on or before the last day of the fiscal year following the fifth anniversary
of the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act. For so long
as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that
are applicable to other public companies that are not emerging growth companies.
These exemptions include:
| · | being permitted to provide only two years of audited financial statements, in addition to any required
unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” disclosure; |
| · | not being required to comply with the requirement of auditor attestation of our internal controls over
financial reporting; |
| · | not being required to comply with any requirement that may be adopted by the Public Company Accounting
Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information
about the audit and the financial statements; |
| · | reduced disclosure obligations regarding executive compensation; and |
| · | not being required to hold a nonbinding advisory vote on executive compensation and shareholder approval
of any golden parachute payments not previously approved. |
We have taken advantage of certain reduced reporting
requirements in this prospectus. Accordingly, the information contained herein may be different than the information you receive from
other public companies in which you hold stock.
An emerging growth company can take advantage
of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply
to private companies. We have irrevocably elected to avail ourselves of this extended transition period and, as a result, we will not
be required to adopt new or revised accounting standards on the dates on which adoption of such standards is required for other public
reporting companies.
We are also a “smaller reporting company”
as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and have elected
to take advantage of certain of the scaled disclosure available for smaller reporting companies.
RISK FACTORS
Investing in our securities involves a high
degree of risk. You should carefully consider the risks described in the documents incorporated by reference in this prospectus and any
prospectus supplement, as well as other information we include or incorporate by reference into this prospectus and any applicable prospectus
supplement, before making an investment decision. Our business, financial condition or results of operations could be materially adversely
affected by the materialization of any of these risks. The trading price of our securities could decline due to the materialization of
any of these risks, and you may lose all or part of your investment. This prospectus and the documents incorporated herein by reference
also contain forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated
in these forward-looking statements as a result of certain factors, including the risks described in the documents incorporated herein
by reference, including the risks described in Part I, Item 1A, Risk Factors in our most recent Annual Report on Form 10-K, together with
the other information set forth in this prospectus, and in the other documents that we include or incorporate by reference into this prospectus,
as updated by our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings we make with the SEC, the risk factors
described under the caption “Risk Factors” in any applicable prospectus supplement and any risk factors set forth in our other
filings with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, before making a decision about investing in our
common stock. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently
known to us or that we currently deem immaterial may also affect our operations. If any risks actually occur, our business, financial
condition and results of operations may be materially and adversely affected. In such an event, the trading price of our common stock
could decline and you could lose part or all of your investment.
For more information about our SEC filings, please
see “Where You Can Find More Information” and “Incorporation by Reference.”
Additional risks not presently known or that we
presently consider to be immaterial could subsequently materially and adversely affect our financial condition, results of operations,
business, and prospects.
USE OF PROCEEDS
The principal purposes of this offering are to
increase our capitalization and financial flexibility, increase our visibility in the marketplace and create a public market for our common
stock. As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to us from
this offering. However, we currently intend to use the net proceeds from this offering to hire additional employees, continue the commercial
launch of our product including training clinicians on The CATAMARAN System procedure, continue clinical marketing studies that are focused
on capturing post-market safety and efficacy data, gathering system feedback and initiating product refinements, other sales and marketing
activities and for working capital and general corporate purposes. See “Business—Research & Development.”
We will retain broad discretion in the allocation
of the net proceeds from this offering and could utilize the proceeds in ways that do not necessarily improve our results of operations
or enhance the value of our common stock.
SELLING SECURITY HOLDERS
Selling security holders are persons or entities
that, directly or indirectly, have acquired or will from time to time acquire from us, our securities in various private transactions.
Such selling security holders may be parties to registration rights agreements with us, or we otherwise may have agreed or will agree
to register their securities for sale. Certain holders of our securities, as well as their transferees, pledgees, donees, or successors,
all of whom we refer to as “selling security holders,” may from time to time offer and sell the securities pursuant to this
prospectus and any applicable prospectus supplement.
The applicable prospectus supplement will set
forth the name of each selling security holder and the number of and type of securities beneficially owned by such selling security holder
that are covered by such prospectus supplement. The applicable prospectus supplement will also disclose whether any of the selling security
holders have held any position or office with, have been employed by, or otherwise have had a material relationship with us during the
three years prior to the date of the prospectus supplement.
DESCRIPTION OF SECURITIES
The descriptions of the securities contained in
this prospectus, together with the applicable prospectus supplements, summarize the material terms and provisions of the various types
of securities that we may offer. We will describe in the applicable prospectus supplement relating to any securities the particular terms
of the securities offered by that prospectus supplement. If we so indicate in the applicable prospectus supplement, the terms of the securities
may differ from the terms we have summarized below. We will also include in the prospectus supplement information, where applicable, about
material U.S. federal income tax considerations relating to the securities, and the securities exchange, if any, on which the securities
will be listed.
We may sell from time to time common stock, preferred
stock, debt securities, warrants to purchase any such securities, or any combination of the foregoing.
In this prospectus, we refer to the common stock,
preferred stock, debt securities, and warrants to be sold by us collectively as “securities.”
If we issue debt securities at a discount from
their original stated principal amount, then we will use the issue price, and not the principal amount, of such debt securities for purposes
of calculating the total dollar amount of all securities issued under this prospectus.
This prospectus may not be used to consummate
a sale of securities unless it is accompanied by a prospectus supplement.
DESCRIPTION OF COMMON STOCK
General
We are authorized to issue up to 130,000,000 shares of common stock, par
value $0.001 per share, with 11,251,299 shares issued and outstanding as of May 4, 2023.
Each share of our common stock has the same relative
rights and is identical in all respects with each other share of common stock.
The holders of our common stock are entitled to
the following rights:
Voting Rights
Each share of our common stock entitles its holder
to one vote per share on all matters to be voted or consented upon by the stockholders. Holders of our common stock are not entitled to
cumulative voting rights with respect to the election of directors.
Election of Directors
The holders of our common stock, voting as a separate
class, shall be entitled to elect one member of our Board of Directors.
Dividend Rights
Subject to limitations under Delaware law and
preferences that may apply to any shares of preferred stock that we may decide to issue in the future, holders of our common stock are
entitled to receive ratably such dividends or other distributions, if any, as may be declared by our Board out of funds legally available
therefor.
Liquidation Rights
In the event of the liquidation, dissolution or
winding up of our business, the holders of our common stock are entitled to share ratably in the assets available for distribution after
the payment of all of our debts and other liabilities, subject to the prior rights of the holders of our preferred stock.
Other Rights
The holders of our common stock have no subscription,
redemption or conversion privileges. Our common stock does not entitle its holders to preemptive rights. All of the outstanding shares
of our common stock are fully paid and non-assessable. The rights, preferences and privileges of the holders of our common stock are subject
to the rights of the holders of shares of any series of preferred stock which we may issue in the future.
Exclusive Forum
Our Certificate of Incorporation provides that,
unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole
and exclusive forum for (a) any derivative action or proceeding brought on behalf of the Company, (b) any action asserting a claim of
breach of a fiduciary duty owed by any director, officer, employee or agent of the Company to the Company or the Company’s stockholders,
(c) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, our Certificate of Incorporation
or Bylaws, or (d) any action asserting a claim governed by the internal affairs doctrine, in each case subject to said Court of Chancery
having personal jurisdiction over the indispensable parties named as defendants therein. This exclusive forum provision may limit the
ability of our stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with us or our directors
or officers, which may discourage lawsuits against us or our directors or officers. Our Certificate of Incorporation also provides that
this choice of forum provision does not apply to claims arising under federal securities laws.
Section 203 of the Delaware General Corporation
Law
We are subject to the provisions of Section 203
of the DGCL regulating corporate takeovers. This statute prevents certain Delaware corporations, under certain circumstances, from engaging
in a “business combination” with:
| ● | a stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an “interested
stockholder”); |
| ● | an affiliate of an interested stockholder; or |
| ● | an associate of an interested stockholder, for three years following the date that the stockholder became
an interested stockholder. |
A “business combination” includes
a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:
| ● | our board of directors approves the transaction that made the stockholder an “interested stockholder,”
prior to the date of the transaction; or |
| ● | after the completion of the transaction that resulted in the stockholder becoming an interested stockholder,
that stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, other than statutorily excluded
shares of common stock. |
Transfer Agent and Registrar
The transfer agent and registrar for our common stock will be VStock
Transfer LLC.
Listing
Our common stock is listed on the Nasdaq Capital
Market under the symbol “TNON”.
DESCRIPTION OF PREFERRED STOCK
This section describes the general terms and provisions
of the preferred stock that we may offer by this prospectus. The prospectus supplement will describe the specific terms of the series
of the preferred stock offered through that prospectus supplement. Those terms may differ from the terms discussed below. Any series of
preferred stock that we issue will be governed by our certificate of incorporation, as amended, including the certificate of designations
relating to such series of preferred stock, and our by-laws.
As of May 4, 2023 we had 20,000,000 authorized shares of preferred stock.
We currently do not have any shares of preferred stock outstanding.
Our Board of Directors without the approval of
the stockholders may issue up to 20,000,000 shares of preferred stock in one or more series and with respect to each series of preferred
stock, the Board of Directors will fix the rights, preferences, privileges, and restrictions of the preferred stock of each series in
the certificate of designations relating to that series. We will incorporate by reference as an exhibit to the registration statement
that includes this prospectus the form of any certificate of designations that describes the terms of the series of preferred stock we
are offering before the issuance of the related series of preferred stock. This description will include the following, to the extent
applicable:
| ● | the title and stated value; |
| ● | the number of shares we are offering; |
| ● | the liquidation preference per share; |
| ● | the dividend rate, period and payment date, and method of calculation for dividends, if any; |
| ● | whether any dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends
will accumulate; |
| ● | the provisions for a sinking fund, if any; |
| ● | the provisions for redemption or repurchase, if applicable, and any restrictions on our ability to exercise
those redemption and repurchase rights; |
| ● | any listing of the preferred stock on any securities exchange or market; |
| ● | whether the preferred stock will be convertible into our common stock and, if applicable, the conversion
price, or how it will be calculated, and the conversion period; |
| ● | whether the preferred stock will be exchangeable into debt securities and, if applicable, the exchange
price, or how it will be calculated, and the exchange period; |
| ● | voting rights, if any, of the preferred stock; |
| ● | preemptive rights, if any; |
| ● | restrictions on transfer, sale, or other assignment, if any; |
| ● | whether interests in the preferred stock will be represented by depositary shares; |
| ● | a discussion of any material or special U.S. federal income tax considerations applicable to the preferred
stock; |
| ● | the relative ranking and preferences of the preferred stock as to dividend rights and rights if we liquidate,
dissolve, or wind up our affairs; any limitations on issuance of any class or series of preferred stock ranking senior to or on a parity
with the series of preferred stock as to dividend rights and rights if we liquidate, dissolve, or wind up our affairs; and |
| ● | any other specific terms, preferences, rights, or limitations of, or restrictions on, the preferred stock. |
When we issue shares of preferred
stock under this prospectus, the shares, when issued in accordance with the terms of the applicable agreement, will be validity issued,
fully paid, and non-assessable and will not have, or be subject to, any preemptive or similar rights.
Section 242 of DGCL provides
that the holders of each class or series of stock will have the right to vote separately as a class on certain amendments to our certificate
of incorporation, as amended, that would affect the class or series of preferred stock, as applicable. This right is in addition to any
voting rights that may be provided for in the applicable certificate of designation.
DESCRIPTION OF WARRANTS
General
As of May 4, 2023, warrants to purchase approximately
96,000 shares of our common stock with a weighted average exercise price per share of $5.00 were outstanding.
We may offer by means of this prospectus warrants
for the purchase of our common stock or preferred stock. We may issue warrants separately or together with any other securities offered
by means of this prospectus, and the warrants may be attached to or separate from such securities. Each series of warrants will be issued
under a separate warrant agreement to be entered into between us and a warrant agent specified therein. The warrant agent will act solely
as our agent in connection with the warrants of such series and will not assume any obligation or relationship of agency or trust for
or with any holders or beneficial owners of warrants.
When we refer to a series of securities in this
section, we mean all securities issued as part of the same series under any applicable indenture, agreement, or other instrument. When
we refer to the prospectus supplement, we mean the applicable prospectus supplement describing the specific terms of the security you
purchase. The terms used in the prospectus supplement will have the meanings described in this prospectus, unless otherwise specified.
The following description of warrants does not
purport to be complete and is qualified in its entirety by reference to the description of a particular series of warrants contained in
an applicable prospectus supplement. For information relating to our capital stock, see “Description of Common Stock,” and
“Description of Preferred Stock.”
Agreements
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. Each series of warrants may be evidenced
by certificates and may be issued under a separate indenture, agreement, or other instrument to be entered into between us and a bank
that we select as agent with respect to such series. The agent, if any, will have its principal office in the United States and have a
combined capital and surplus of at least $50,000,000. Warrants in book-entry form will be represented by a global security registered
in the name of a depositary, which will be the holder of all the securities represented by the global security. Those who own beneficial
interests in a global security will do so through participants in the depositary’s system, and the rights of these indirect owners
will be governed solely by the applicable procedures of the depositary and its participants.
General Terms of Warrants
The prospectus supplement relating to a series
of warrants will identify the name and address of the warrant agent, if any. The prospectus supplement will describe the following terms,
where applicable, of the warrants in respect of which this prospectus is being delivered:
| · | the title and issuer of the warrants; |
| · | the aggregate number of warrants; |
| · | the price or prices at which the warrants will be issued; |
| · | the currencies in which the price or prices of the warrants may be payable; |
| · | the designation, amount, and terms of the securities purchasable upon exercise of the warrants; |
| · | the designation and terms of the other securities with which the warrants are issued and the number of
warrants issued with each such security or each principal amount of security; |
| · | if applicable, the date on and after which the warrants and any related securities will be separately
transferable; |
| · | any securities exchange or quotation system on which the warrants or any securities deliverable upon exercise
of such securities may be listed; |
| · | the price or prices at which and currency or currencies in which the securities purchasable upon exercise
of the warrants may be purchased; |
| · | the date on which the right to exercise the warrants shall commence and the date on which such right shall
expire; |
| · | the minimum or maximum amount of warrants that may be exercised at any one time; |
| · | whether the warrants will be issued in fully registered for or bearer form, in global or non-global form,
or in any combination of these forms; |
| · | information with respect to book-entry procedures, if any; |
| · | a discussion of certain U.S. federal income tax considerations; and |
| · | any other material terms of the warrants, including terms, procedures, and limitations relating to the
exchange and exercise of the warrants. |
Exercise of Warrants
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. If any warrant is exercisable for
other securities or other property, the following provisions will apply. Each such warrant may be exercised at any time up to any expiration
date and time mentioned in the prospectus supplement relating to those warrants. After the close of business on any applicable expiration
date, unexercised warrants will become void.
Warrants may be exercised by delivery of the certificate
representing the securities to be exercised, or in the case of global securities by delivery of an exercise notice for those warrants,
together with certain information, and payment to any agent in immediately available funds, as provided in the prospectus supplement,
of the required purchase amount, if any. Upon receipt of payment and the certificate or exercise notice properly executed at the office
indicated in the prospectus supplement, we will, in the time period the relevant agreement provides, issue and deliver the securities
or other property purchasable upon such exercise. If fewer than all of the warrants represented by such certificates are exercised, a
new certificate will be issued for the remaining amount of warrants.
If mentioned in the prospectus supplement, securities
may be surrendered as all or part of the exercise price for warrants.
Antidilution Provisions
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. In the case of warrants to purchase
common stock, the exercise price payable and the number of shares of common stock purchasable upon warrant exercise may be adjusted in
certain events, including:
| · | the issuance of a stock dividend to common stockholders or a combination, subdivision, or reclassification
of common stock; |
| · | the issuance of rights, warrants, or options to all common and preferred stockholders entitling them to
purchase common stock for an aggregate consideration per share less than the current market price per share of common stock; |
| · | any distribution to our common stockholders of evidences of our indebtedness of assets, excluding cash
dividends or distributions referred to above; and |
| · | any other events mentioned in the prospectus supplement. |
The prospectus supplement will describe which,
if any, of these provisions shall apply to a particular series of warrants.
Unless otherwise specified in the applicable prospectus
supplement, no adjustment in the number of shares purchasable upon warrant exercise will be required until cumulative adjustments require
an adjustment of at least 1% of such number and no fractional shares will be issued upon warrant exercise, but we will pay the cash value
of any fractional shares otherwise issuable.
Modification
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. We and any agent for any series
of warrants may amend any warrant or rights agreement and the terms of the related warrants by executing a supplemental agreement, without
any such warrant holders’ consent, for the purpose of:
| · | curing any ambiguity, any defective or inconsistent provision contained in the agreement, or making any
other corrections to the agreement that are not inconsistent with the provisions of the warrant certificates; |
| · | evidencing the succession of another corporation to us and its assumption of our covenants contained in
the agreement and the securities; |
| · | appointing a successor depository, if the securities are issued in the form of global securities; |
| · | evidencing a successor agent’s acceptance of appointment with respect to any securities; |
| · | adding to our covenants for the benefit of securityholders or surrendering any right or power we have
under the agreement; |
| · | issuing warrants in definitive form, if such securities are initially issued in the form of global securities;
or |
| · | amending the agreement and the warrants as we deem necessary or desirable and that will not adversely
affect the interests of the applicable warrant holders in any material respect. |
We and any agent for any series of warrants may
also amend any agreement and the related warrants by a supplemental agreement with the consent of the holders of a majority of the warrants
of any series affected by such amendment, for the purpose of adding, modifying, or eliminating any of the agreement’s provisions
or of modifying the rights of the holders of warrants. However, no such amendment that:
| · | reduces the number or amount of securities receivable upon any exercise of any such security; |
| · | shortens the time period during which any such security may be exercised; |
| · | otherwise adversely affects the exercise rights of warrant holders in any material respect; or |
| · | reduces the number of securities the consent of holders of which is required for amending the agreement
or the related warrants; |
may be made without the consent of each holder
affected by that amendment.
Consolidation, Merger, and Sale of Assets
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. Any agreement with respect to warrants
will provide that we are generally permitted to merge or consolidate with another corporation or other entity. Any such agreement will
also provide that we are permitted to sell our assets substantially as an entirety to another corporation or other entity or to have another
entity sell its assets substantially as an entirety to us. With regard to any series of warrants, however, we may not take any of these
actions unless all of the following conditions are met:
| · | if we are not the successor entity, the person formed by the consolidation or into or with which we merge
or the person to which our properties and assets are conveyed, transferred, or leased must be an entity organized and existing under the
laws of the United States, any state, or the District of Columbia and must expressly assume the performance of our covenants under any
relevant indenture, agreement, or other instrument; and |
| · | we or that successor corporation must not immediately be in default under that agreement. |
Enforcement by Holders of Warrants
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. Any agent for any series of warrants
will act solely as our agent under the relevant agreement and will not assume any obligation or relationship of agency or trust for any
securityholder. A single bank or trust company may act as agent for more than one issue of securities. Any such agent will have no duty
or responsibility in case we default in performing our obligations under the relevant agreement or warrant, including any duty or responsibility
to initiate any legal proceedings or to make any demand upon us. Any securityholder may, without the agent’s consent or consent
of any other securityholder, enforce by appropriate legal action its right to exercise any warrant exercisable for any property.
Replacement of Certificates
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. We will replace any destroyed, lost,
stolen, or mutilated warrant or rights certificate upon delivery to us and any applicable agent of satisfactory evidence of the ownership
of that certificate and of its destruction, loss, theft or mutilation, and (in the case of mutilation) surrender of that certificate to
us or any applicable agent, unless we have, or the agent has, received notice that the certificate has been acquired by a bona fide purchaser.
That securityholder will also be required to provide indemnity satisfactory to us and the relevant agent before a replacement certificate
will be issued.
Title
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any warrants we issue pursuant to this prospectus. We, any agents for any series of
warrants, and any of their agents may treat the registered holder of any certificate as the absolute owner of the securities evidenced
by that certificate for any purpose and as the person entitled to exercise the rights attaching to the warrants so requested, despite
any notice to the contrary.
DESCRIPTION OF DEBT SECURITIES
Any debt securities we may issue, offered by this
prospectus and any accompanying prospectus supplement, will be issued under an indenture to be entered into between our company and the
trustee identified in the applicable prospectus supplement. The terms of the debt securities will include those stated in the indenture
and those made part of the indenture by reference to the Trust Indenture Act of 1939, as in effect on the date of the indenture. We have
filed a copy of the form of indenture as an exhibit to the registration statement in which this prospectus is included. The indenture
will be subject to and governed by the terms of the Trust Indenture Act of 1939.
Unless otherwise specified in the applicable prospectus
supplement, the debt securities will represent direct, unsecured obligations of our company and will rank equally with all of our other
unsecured indebtedness.
The following statements relating to the debt
securities and the indenture are summaries, qualified in their entirety to the detailed provisions of the indenture.
General
We may issue the debt securities in one or more
series with the same or various maturities, at par, at a premium, or at a discount. We will describe the particular terms of each series
of debt securities in a prospectus supplement relating to that series, which we will file with the SEC.
The prospectus supplement will set forth, to the
extent required, the following terms of the debt securities in respect of which the prospectus supplement is delivered:
| · | the title of the series; |
| · | the aggregate principal amount; |
| · | the issue price or prices, expressed as a percentage of the aggregate principal amount of the debt securities; |
| · | any limit on the aggregate principal amount; |
| · | the date or dates on which principal is payable; |
| · | the interest rate or rates (which may be fixed or variable) or, if applicable, the method used to determine
such rate or rates; |
| · | the date or dates from which interest, if any, will be payable and any regular record date for the interest
payable; |
| · | the place or places where principal and, if applicable, premium and interest, is payable; |
| · | the terms and conditions upon which we may, or the holders may require us to, redeem or repurchase the
debt securities; |
| · | the denominations in which such debt securities may be issuable, if other than denominations of $1,000,
or any integral multiple of that number; |
| · | whether the debt securities are to be issuable in the form of certificated debt securities (as described
below) or global debt securities (as described below); |
| · | the portion of principal amount that will be payable upon declaration of acceleration of the maturity
date if other than the principal amount of the debt securities; |
| · | the currency of denomination; |
| · | the designation of the currency, currencies, or currency units in which payment of principal and, if applicable,
premium and interest, will be made; |
| · | if payments of principal and, if applicable, premium or interest, on the debt securities are to be made
in one or more currencies or currency units other than the currency of denomination, the manner in which the exchange rate with respect
to such payments will be determined; |
| · | if amounts of principal and, if applicable, premium and interest may be determined by reference to an
index based on a currency or currencies, or by reference to a commodity, commodity index, stock exchange index, or financial index, then
the manner in which such amounts will be determined; |
| · | the provisions, if any, relating to any collateral provided for such debt securities; |
| · | any addition to or change in the covenants and/or the acceleration provisions described in this prospectus
or in the indenture; |
| · | any events of default, if not otherwise described below under “Events of Default”; |
| · | the terms and conditions, if any, for conversion into or exchange for shares of common stock or preferred
stock; |
| · | any depositaries, interest rate calculation agents, exchange rate calculation agents, or other agents;
and |
| · | the terms and conditions, if any, upon which the debt securities shall be subordinated in right of payment
to other indebtedness of our company. |
We may issue discount debt securities that provide
for an amount less than the stated principal amount to be due and payable upon acceleration of the maturity of such debt securities in
accordance with the terms of the indenture. We may also issue debt securities in bearer form, with or without coupons. If we issue discount
debt securities or debt securities in bearer form, we will describe material U.S. federal income tax considerations and other material
special considerations which apply to these debt securities in the applicable prospectus supplement.
We may issue debt securities denominated in or
payable in a foreign currency or currencies or a foreign currency unit or units. If we do, we will describe the restrictions, elections,
and general tax considerations relating to the debt securities and the foreign currency or currencies or foreign currency unit or units
in the applicable prospectus supplement.
Exchange and/or Conversion Rights
We may issue debt securities that can be exchanged
for or converted into shares of common stock or preferred stock. If we do, we will describe the terms of exchange or conversion in the
prospectus supplement relating to these debt securities.
Transfer and Exchange
We may issue debt securities that will be represented
by either:
| · | “book-entry securities,” which means that there will be one or more global securities registered
in the name of a depositary or a nominee of a depositary; or |
| · | “certificated securities,” which means that they will be represented by a certificate issued
in definitive registered form. |
We will specify in the prospectus supplement applicable
to a particular offering whether the debt securities offered will be book-entry or certificated securities.
Certificated Debt Securities
Those who hold certificated debt securities may
transfer or exchange such debt securities at the trustee’s office or at the paying agent’s office or agency in accordance
with the terms of the indenture. There will be no service charge for any transfer or exchange of certificated debt securities, but there
may be a requirement to pay an amount sufficient to cover any tax or other governmental charge payable in connection with such transfer
or exchange.
Those who hold certificated debt securities may
effect the transfer of certificated debt securities and of the right to receive the principal of, premium, and/or interest, if any, on
the certificated debt securities only by surrendering the certificate representing the certificated debt securities and having us or the
trustee issue a new certificate to the new holder.
Global Securities
If we decide to issue debt securities in the form
of one or more global securities, then we will register the global securities in the name of the depositary for the global securities
or the nominee of the depositary, and the global securities will be delivered by the trustee to the depositary for credit to the accounts
of the holders of beneficial interests in the debt securities.
The prospectus supplement will describe the specific
terms of the depositary arrangement for debt securities of a series that are issued in global form. None of us, the trustee, any payment
agent, or the security registrar will have any responsibility or liability for any aspect of the records relating to or payments made
on account of beneficial ownership interests in a global debt security or for maintaining, supervising, or reviewing any records relating
to these beneficial ownership interests.
No Protection in the Event of Change of Control
The indenture does not have any covenants or other
provisions providing for a put or increased interest or otherwise that would afford holders of debt securities additional protection in
the event of a recapitalization transaction, a change of control of our company, or a highly leveraged transaction. If we offer any covenants
or provisions of this type with respect to any debt securities covered by this prospectus, we will describe them in the applicable prospectus
supplement.
Covenants
Unless otherwise indicated in this prospectus
or a prospectus supplement, the debt securities will not have the benefit of any covenants that limit or restrict our business or operations,
the pledging of our assets, or the incurrence by us of indebtedness. We will describe in the applicable prospectus supplement any material
covenants in respect of a series of debt securities.
Consolidation, Merger, and Sale of Assets
We will agree in the indenture that we will not
consolidate with or merge into any other person, or convey, transfer, sell, or lease our properties and assets substantially as an entirety
to any person, unless:
| · | the person formed by the consolidation or into or with which we are merged or the person to which our
properties and assets are conveyed, transferred, sold, or leased, is a corporation organized and existing under the laws of the United
States, any state, or the District of Columbia, or a corporation or comparable legal entity organized under the laws of a foreign jurisdiction
and, if we are not the surviving person, the surviving person has expressly assumed all of our obligations, including the payment of the
principal of, and premium, if any, and interest on the debt securities and the performance of the other covenants under the indenture;
and |
| · | immediately after giving effect to the transaction, no event of default, and no event which, after notice
or lapse of time or both, would become an event of default, has occurred and is continuing under the indenture. |
Events of Default
Unless otherwise specified in the applicable prospectus
supplement, the following events will be events of default under the indenture with respect to debt securities of any series:
| · | we fail to pay any principal or premium, if any, when it becomes due and such default is not cured within 5 business days; |
| · | we fail to pay any interest within 30 days after it becomes due; |
| · | we fail to comply with any other covenant in the debt securities or the indenture for 60 days after written notice specifying the
failure from the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding debt securities of that
series; and |
| · | certain events involving bankruptcy, insolvency, or reorganization of our company or any of our significant subsidiaries. |
The trustee may withhold notice to the holders of the debt securities
of any series of any default, except in payment of principal of, or premium, if any, or interest on the debt securities of a series, if
the trustee considers it to be in the best interest of the holders of the debt securities of that series to do so.
If an event of default (other than an event of
default resulting from certain events of bankruptcy, insolvency, or reorganization) occurs, and is continuing, then the trustee or the
holders of not less than 25% in aggregate principal amount of the outstanding debt securities of any series may accelerate the maturity
of the debt securities. If this happens, the entire principal amount, plus the premium, if any, of all the outstanding debt securities
of the affected series plus accrued interest to the date of acceleration will be immediately due and payable. At any time after the acceleration,
but before a judgment or decree based on such acceleration is obtained by the trustee, the holders of a majority in aggregate principal
amount of outstanding debt securities of such series may rescind and annul such acceleration if:
| · | all events of default (other than nonpayment of accelerated principal, premium, or interest) have been
cured or waived; |
| · | all lawful interest on overdue interest and overdue principal has been paid; and |
| · | the rescission would not conflict with any judgment or decree. |
In addition, if the acceleration occurs at any time when we have
outstanding indebtedness which is senior to the debt securities, the payment of the principal amount of outstanding debt securities may
be subordinated in right of payment to the prior payment of any amounts due under the senior indebtedness, in which case the holders of
debt securities will be entitled to payment under the terms prescribed in the instruments evidencing the senior indebtedness and the indenture.
If an event of default resulting from certain
events of bankruptcy, insolvency, or reorganization occurs, the principal, premium, and interest amount with respect to all of the debt
securities of any series will be due and payable immediately without any declaration or other act on the part of the trustee or the holders
of the debt securities of that series.
The holders of a majority in principal amount
of the outstanding debt securities of a series will have the right to waive any existing default or compliance with any provision of the
indenture or the debt securities of that series and to direct the time, method, and place of conducting any proceeding for any remedy
available to the trustee, subject to certain limitations specified in the indenture.
No holder of any debt security of a series will
have any right to institute any proceeding with respect to the indenture or for any remedy under the indenture, unless:
| · | the holder gives to the trustee written notice of a continuing event of default; |
| · | the holders of at least 25% in aggregate principal amount of the outstanding debt securities of the affected
series make a written request and offer reasonable indemnity to the trustee to institute a proceeding as trustee; |
| · | the trustee fails to institute a proceeding within 60 days after such request; and |
| · | the holders of a majority in aggregate principal amount of the outstanding debt securities of the affected
series do not give the trustee a direction inconsistent with such request during such 60-day period. |
These limitations do not, however, apply to a suit instituted
for payment on debt securities of any series on or after the due dates expressed in the debt securities.
Modification and Waiver
From time to time, we and the trustee may, without
the consent of holders of the debt securities of one or more series, amend the indenture or the debt securities of one or more series,
or supplement the indenture, for certain specified purposes, including:
| · | to provide that the surviving entity following a change of control of our company permitted under the
indenture will assume all of our obligations under the indenture and debt securities; |
| · | to provide for certificated debt securities in addition to uncertificated debt securities; |
| · | to comply with any requirements of the SEC under the Trust Indenture Act of 1939; |
| · | to cure any ambiguity, defect, or inconsistency, or make any other change that does not materially and
adversely affect the rights of any holder; and |
| · | to appoint a successor trustee under the indenture with respect to one or more series. |
From time to time, we and the trustee may, with
the consent of holders of at least a majority in principal amount of the outstanding debt securities, amend or supplement the indenture
or the debt securities, or waive compliance in a particular instance by us with any provision of the indenture or the debt securities.
We may not, however, without the consent of each holder affected by such action, modify or supplement the indenture or the debt securities,
or waive compliance with any provision of the indenture or the debt securities in order to:
| · | reduce the amount of debt securities whose holders must consent to an amendment, supplement, or waiver to the indenture or such debt
security; |
| · | reduce the rate of or change the time for payment of interest; |
| · | reduce the principal of or change the stated maturity of the debt securities; |
| · | make any debt security payable in money other than that stated in the debt security; |
| · | change the amount or time of any payment required, or reduce the premium payable upon any redemption, or change the time before which
no such redemption may be made; |
| · | waive a default in the payment of the principal of, premium, if any, or interest on the debt securities or a redemption payment; or |
| · | take any other action otherwise prohibited by the indenture to be taken without the consent of each holder affected by the action. |
Defeasance of Debt Securities and Certain Covenants in Certain
Circumstances
The indenture will permit us, at any time, to elect to discharge our
obligations with respect to one or more series of debt securities by following certain procedures described in the indenture. These procedures
will allow us either:
| · | to defease and be discharged from any and all of our obligations with respect to any debt securities except
for the following obligations (which discharge is referred to as “legal defeasance”): |
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(1) |
to register the transfer or exchange of such debt securities; |
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(2) |
to replace temporary or mutilated, destroyed, lost,
or stolen debt securities; |
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(3) |
to compensate and indemnify the trustee; or |
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(4) |
to maintain an office or agency in respect of the debt
securities and to hold monies for payment in trust; or |
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| · | to be released from our obligations with respect to the debt securities under certain covenants contained
in the indenture, as well as any additional covenants which may be contained in the applicable supplemental indenture (which release is
referred to as “covenant defeasance”). |
In order to exercise either defeasance option,
we must deposit with the trustee or other qualifying trustee, in trust for that purpose:
| · | U.S. Government Obligations (as described below) or Foreign Government Obligations (as described below),
which through the scheduled payment of principal and interest in accordance with their terms will provide money; or |
| · | a combination of money and/or U.S. Government Obligations and/or Foreign Government Obligations sufficient
in the written opinion of a nationally-recognized firm of independent accountants to provide money; |
which in each case specified above, provides a sufficient amount to
pay the principal of, premium, if any, and interest, if any, on the debt securities of the series, on the scheduled due dates, or on a
selected date of redemption in accordance with the terms of the indenture.
In addition, defeasance may be effected only if,
among other things:
| · | in the case of either legal or covenant defeasance, we deliver to the trustee an opinion of counsel, as
specified in the indenture, stating that as a result of the defeasance neither the trust nor the trustee will be required to register
as an investment company under the Investment Company Act of 1940; |
| · | in the case of legal defeasance, we deliver to the trustee an opinion of counsel stating that we have
received from, or there has been published by, the Internal Revenue Service a ruling to the effect that, or there has been a change in
any applicable federal income tax law with the effect that (and the opinion shall confirm that), the holders of outstanding debt securities
will not recognize income, gain, or loss for U.S. federal income tax purposes solely as a result of such legal defeasance and will be
subject to U.S. federal income tax on the same amounts, in the same manner, including as a result of prepayment, and at the same times
as would have been the case if legal defeasance had not occurred; |
| · | in the case of covenant defeasance, we deliver to the trustee an opinion of counsel to the effect that
the holders of the outstanding debt securities will not recognize income, gain, or loss for U.S. federal income tax purposes as a result
of covenant defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner, and at the same times as
would have been the case if covenant defeasance had not occurred; and |
| · | certain other conditions described in the indenture are satisfied. |
If we fail to comply with our remaining obligations under the
indenture and applicable supplemental indenture after a covenant defeasance of the indenture and applicable supplemental indenture, and
the debt securities are declared due and payable because of the occurrence of any undefeased event of default, the amount of money and/or
U.S. Government Obligations and/or Foreign Government Obligations on deposit with the trustee could be insufficient to pay amounts due
under the debt securities of the affected series at the time of acceleration. We will, however, remain liable in respect of these payments.
The term “U.S. Government Obligations”
as used in the above discussion means securities that are direct obligations of or non-callable obligations guaranteed by the United States
of America for the payment of which obligation or guarantee the full faith and credit of the United States of America is pledged.
The term “Foreign Government Obligations”
as used in the above discussion means, with respect to debt securities of any series that are denominated in a currency other than U.S.
dollars (1) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged or (2) obligations of a person controlled or supervised by or acting as an agent or instrumentality
of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by that government,
which in either case under clauses (1) or (2), are not callable or redeemable at the option of the issuer.
Regarding the Trustee
We will identify the trustee with respect to any
series of debt securities in the prospectus supplement relating to the applicable debt securities. You should note that if the trustee
becomes a creditor of our company, the indenture and the Trust Indenture Act of 1939 limit the rights of the trustee to obtain payment
of claims in certain cases, or to realize on certain property received in respect of any such claim, as security or otherwise. The trustee
and its affiliates may engage in, and will be permitted to continue to engage in, other transactions with us and our affiliates. If, however,
the trustee acquires any “conflicting interest” within the meaning of the Trust Indenture Act of 1939, it must eliminate such
conflict or resign.
The holders of a majority in principal amount
of the then outstanding debt securities of any series may direct the time, method, and place of conducting any proceeding for exercising
any remedy available to the trustee. If an event of default occurs and is continuing, the trustee, in the exercise of its rights and powers,
must use the degree of care and skill of a prudent person in the conduct of his or her own affairs. Subject to that provision, the trustee
will be under no obligation to exercise any of its rights or powers under the indenture at the request of any of the holders of the debt
securities, unless they have offered to the trustee reasonable indemnity or security.
General
We may issue rights to our stockholders to purchase
shares of our common stock, preferred stock or the other securities described in this prospectus. We may offer rights separately or together
with one or more additional rights, debt securities, preferred stock, common stock or warrants, or any combination of those securities
in the form of units, as described in the applicable prospectus supplement. Each series of rights will be issued under a separate rights
agreement to be entered into between us and a bank or trust company, as rights agent. The rights agent will act solely as our agent in
connection with the certificates relating to the rights of the series of certificates and will not assume any obligation or relationship
of agency or trust for or with any holders of rights certificates or beneficial owners of rights. The following description sets forth
certain general terms and provisions of the rights to which any prospectus supplement may relate. The particular terms of the rights to
which any prospectus supplement may relate and the extent, if any, to which the general provisions may apply to the rights so offered
will be described in the applicable prospectus supplement. To the extent that any particular terms of the rights, rights agreement or
rights certificates described in a prospectus supplement differ from any of the terms described below, then the terms described below
will be deemed to have been superseded by that prospectus supplement. We encourage you to read the applicable rights agreement and rights
certificate for additional information before you decide whether to purchase any of our rights. We will provide in a prospectus supplement
the following terms of the rights being issued:
| · | the date of determining the stockholders entitled to the rights distribution; |
| · | the aggregate number of shares of common stock, preferred stock or other securities purchasable upon exercise of the rights; |
| · | the aggregate number of rights issued; |
| · | whether the rights are transferrable and the date, if any, on and after which the rights may be separately transferred; |
| · | the date on which the right to exercise the rights will commence, and the date on which the right to exercise the rights will expire; |
| · | the method by which holders of rights will be entitled to exercise; |
| · | the conditions to the completion of the offering, if any; |
| · | the withdrawal, termination and cancellation rights, if any; |
| · | whether there are any backstop or standby purchaser or purchasers and the terms of their commitment, if any; |
| · | whether stockholders are entitled to oversubscription rights, if any; |
| · | any applicable material United States federal income tax considerations; and |
| · | any other terms of the rights, including terms, procedures and limitations relating to the distribution, exchange and exercise of
the rights, as applicable. |
Each right will entitle the holder of rights to
purchase for cash the principal amount of shares of common stock, preferred stock or other securities at the exercise price provided in
the applicable prospectus supplement. Rights may be exercised at any time up to the close of business on the expiration date for the rights
provided in the applicable prospectus supplement.
Holders may exercise rights as described in the
applicable prospectus supplement. Upon receipt of payment and the rights certificate properly completed and duly executed at the corporate
trust office of the rights agent or any other office indicated in the prospectus supplement, we will, as soon as practicable, forward
the shares of common stock, preferred stock or other securities, as applicable, purchasable upon exercise of the rights. If less than
all of the rights issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than
stockholders, to or through agents, underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements,
as described in the applicable prospectus supplement.
Rights Agent
The rights agent for any rights we offer will
be set forth in the applicable prospectus supplement.
DESCRIPTION OF UNITS
This section outlines some of the provisions of
the units and the unit agreements that we may enter into. This information may not be complete in all respects and is qualified entirely
by reference to the unit agreement with respect to the units of any particular series. The specific terms of any series of units will
be described in the applicable prospectus supplement. If so described in a particular supplement, the specific terms of any series of
units may differ from the general description of terms presented below.
We may issue units comprised of one or more debt
securities, shares of common stock, shares of preferred stock, and warrants in any combination. Each unit will be issued so that the holder
of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations
of a holder of each included security. The unit agreement under which a unit is issued may provide that the securities included in the
unit may not be held or transferred separately, at any time or at any time before a specified date.
The applicable prospectus supplement may describe:
| · | the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances
those securities may be held or transferred separately; |
| · | any provisions of the governing unit agreement that differ from those described below; and |
| · | any provisions for the issuance, payment, settlement, transfer, or exchange of the units or of the securities comprising the units. |
The provisions described in this section, as well as those described
under “Description of Common Stock,” “Description of Preferred Stock,” “Description of Warrants,”
and “Description of Debt Securities” will apply to the securities included in each unit, to the extent relevant.
Issuance in Series
We may issue units in such amounts and in as many
distinct series as we wish. This section summarizes terms of the units that apply generally to all series. Most of the financial and other
specific terms of your series will be described in the applicable prospectus supplement.
Unit Agreements
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any units we issue pursuant to this prospectus. We will issue the units under one or
more unit agreements to be entered into between us and a bank or other financial institution, as unit agent. We may add, replace, or terminate
unit agents from time to time. We will identify the unit agreement under which each series of units will be issued and the unit agent
under that agreement in the applicable prospectus supplement.
The following provisions will generally apply
to all unit agreements unless otherwise stated in the applicable prospectus supplement.
Enforcement of Rights
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any units we issue pursuant to this prospectus. The unit agent under a unit agreement
will act solely as our agent in connection with the units issued under that agreement. The unit agent will not assume any obligation or
relationship of agency or trust for or with any holders of those units or of the securities comprising those units. The unit agent will
not be obligated to take any action on behalf of those holders to enforce or protect their rights under the units or the included securities.
Except as indicated in the next paragraph, a holder
of a unit may, without the consent of the unit agent or any other holder, enforce its rights as holder under any security included in
the unit, in accordance with the terms of that security and the indenture, warrant agreement, rights agreement or other instrument under
which that security is issued. Those terms are described elsewhere in this prospectus under the sections relating to debt securities,
preferred stock, common stock, or warrants, as relevant.
Notwithstanding the foregoing, a unit agreement
may limit or otherwise affect the ability of a holder of units issued under that agreement to enforce its rights, including any right
to bring a legal action, with respect to those units or any securities, other than debt securities, that are included in those units.
Limitations of this kind will be described in the applicable prospectus supplement.
Modification without Consent of Holders.
Unless otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant
to this prospectus. We and the applicable unit agent may amend any unit or unit agreement without the consent of any holder:
| · | to correct or supplement any defective or inconsistent provision; or |
| · | to make any other change that we believe is necessary or desirable and will not adversely affect the interests
of the affected holders in any material respect. |
We do not need any approval to make changes that affect only
units to be issued after the changes take effect. We may also make changes that do not adversely affect a particular unit in any material
respect, even if they adversely affect other units in a material respect. In those cases, we do not need to obtain the approval of the
holder of the unaffected unit; we need only obtain any required approvals from the holders of the affected units.
Modification with Consent of Holders.
Unless otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant
to this prospectus. We may not amend any particular unit or a unit agreement with respect to any particular unit unless we obtain the
consent of the holder of that unit, if the amendment would:
| · | impair any right of the holder to exercise or enforce any right under a security included in the unit
if the terms of that security require the consent of the holder to any changes that would impair the exercise or enforcement of that right;
or |
| · | reduce the percentage of outstanding units or any series or class the consent of whose holders is required
to amend that series or class, or the applicable unit agreement with respect to that series or class, as described below. |
Any other change to a particular unit agreement and the units
issued under that agreement would require the following approval:
| · | if the change affects only the units of a particular series issued under that agreement, the change must
be approved by the holders of a majority of the outstanding units of that series; or |
| · | if the change affects the units of more than one series issued under that agreement, it must be approved
by the holders of a majority of all outstanding units of all series affected by the change, with the units of all the affected series
voting together as one class for this purpose. |
These provisions regarding changes with majority approval also
apply to changes affecting any securities issued under a unit agreement, as the governing document.
In each case, the required approval must be given
by written consent.
Unit Agreements Will Not Be Qualified Under
Trust Indenture Act. No unit agreement will be qualified as an indenture, and no unit agent will be required to qualify as a trustee,
under the Trust Indenture Act. Therefore, holders of units issued under unit agreements will not have the protections of the Trust Indenture
Act with respect to their units.
Mergers and Similar Transactions Permitted;
No Restrictive Covenants or Events of Default
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any units we issue pursuant to this prospectus. The unit agreements will not restrict
our ability to merge or consolidate with, or sell our assets to, another corporation or other entity or to engage in any other transactions.
If at any time we merge or consolidate with, or sell our assets substantially as an entirety to, another corporation or other entity,
the successor entity will succeed to and assume our obligations under the unit agreements. We will then be relieved of any further obligation
under these agreements.
The unit agreements will not include any restrictions
on our ability to put liens on our assets, including our interests in our subsidiaries, nor will they restrict our ability to sell our
assets. The unit agreements also will not provide for any events of default or remedies upon the occurrence of any events of default.
Governing Law
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any units we issue pursuant to this prospectus. The unit agreements and the units will
be governed by Delaware or New York law as decided by the Company at the time of issuance.
Form, Exchange, and Transfer
Unless otherwise provided in the applicable prospectus
supplement, the following provisions will apply to any units we issue pursuant to this prospectus. We will issue each unit in global—that
is, book-entry—form only. Units in book-entry form will be represented by a global security registered in the name of a depositary,
which will be the holder of all the units represented by the global security. Those who own beneficial interests in a unit will do so
through participants in the depositary’s system, and the rights of these indirect owners will be governed solely by the applicable
procedures of the depositary and its participants.
In addition, we will issue each unit in registered
form, unless we say otherwise in the applicable prospectus supplement. Bearer securities would be subject to special provisions, as we
describe below under “Securities Issued in Bearer Form.”
Each unit and all securities comprising the unit
will be issued in the same form.
If we issue any units in registered, non-global
form, the following will apply to them.
The units will be issued in the denominations
stated in the applicable prospectus supplement. Holders may exchange their units for units of smaller denominations or combined into fewer
units of larger denominations, as long as the total amount is not changed.
| · | Holders may exchange or transfer their units at the office of the unit agent. Holders may also replace
lost, stolen, destroyed, or mutilated units at that office. We may appoint another entity to perform these functions or perform them ourselves. |
| · | Holders will not be required to pay a service charge to transfer or exchange their units, but they may
be required to pay for any tax or other governmental charge associated with the transfer or exchange. The transfer or exchange, and any
replacement, will be made only if our transfer agent is satisfied with the holder’s proof of legal ownership. The transfer agent
may also require an indemnity before replacing any units. |
| · | If we have the right to redeem, accelerate, or settle any units before their maturity, and we exercise
our right as to less than all those units or other securities, we may block the exchange or transfer of those units during the period
beginning 15 days before the day we mail the notice of exercise and ending on the day of that mailing, in order to freeze the list of
holders to prepare the mailing. We may also refuse to register transfers of or exchange any unit selected for early settlement, except
that we will continue to permit transfers and exchanges of the unsettled portion of any unit being partially settled. We may also block
the transfer or exchange of any unit in this manner if the unit includes securities that are or may be selected for early settlement. |
Only the depositary will be entitled to transfer or exchange
a unit in global form, since it will be the sole holder of the unit.
Payments and Notices
In making payments and giving notices with respect
to our units, we will follow the procedures we plan to use with respect to our debt securities, where applicable.
PLAN OF DISTRIBUTION
We and any selling security holders may sell the
securities covered by this prospectus directly to purchasers or through underwriters, broker-dealers, or agents, who may receive compensation
in the form of discounts, concessions, or commissions from us. These discounts, concessions, or commissions as to any particular underwriter,
broker-dealer, or agent may be in excess of those customary in the types of transactions involved. In addition, we may issue the securities
as a dividend or distribution or in a subscription rights offering to our existing security holders.
The securities may be sold in one or more transactions
at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices.
These sales may be effected in transactions which may involve crosses or block transactions.
If underwriters are used in an offering of securities,
such offered securities may be resold in one or more transactions:
| · | on any national securities exchange or quotation service on which the common stock or the preferred stock
may be listed or quoted at the time of sale, including, as of the date of this prospectus, the Nasdaq Capital Market in the case of the
common stock; |
| · | in the over-the-counter market; |
| · | in transactions otherwise than on these exchanges or services or in the over-the-counter market; or |
| · | through the writing of options, whether the options are listed on an options exchange or otherwise. |
Each prospectus supplement will state the terms of the offering, including,
but not limited to:
| · | the names of any underwriters, dealers, or agents; |
| · | the public offering or purchase price of the securities and the net proceeds that we will receive from the sale; |
| · | any underwriting discounts and commissions or other items constituting underwriters’ compensation; |
| · | any discounts, commissions, or fees allowed or paid to dealers or agents; and |
| · | any securities exchange on which the offered securities may be listed. |
If we sell securities to underwriters, we will
execute an underwriting agreement with them at the time of the sale and will name them in the applicable prospectus supplement. In connection
with these sales, the underwriters may be deemed to have received compensation in the form of underwriting discounts and commissions.
The underwriters also may receive commissions from purchasers of securities for whom they may act as agent. Unless we specify otherwise
in the applicable prospectus supplement, the underwriters will not be obligated to purchase the securities unless the conditions set forth
in the underwriting agreement are satisfied, and if the underwriters purchase any of the securities offered by such prospectus supplement,
they will be required to purchase all of such offered securities. The underwriters may acquire the securities for their own account and
may resell the securities from time to time in one or more transactions, including negotiated transactions, at a fixed public offering
price or varying prices determined at the time of sale. The underwriters may sell the securities to or through dealers, and those dealers
may receive discounts, concessions, or commissions from the underwriters as well as from the purchasers for whom they may act as agent.
We may designate agents who agree to use their
reasonable efforts to solicit purchasers for the period of their appointment or to sell securities on a continuing basis. We may also
sell securities directly to one or more purchasers without using underwriters or agents.
Under agreements entered into with us, underwriters
and agents may be entitled to indemnification by us against certain civil liabilities, including liabilities under the Securities Act,
or to contribution for payments the underwriters or agents may be required to make. The underwriters, agents, and their affiliates may
engage in financial or other business transactions with us and our subsidiaries in the ordinary course of business.
The aggregate proceeds to us from the sale of the securities will be
the purchase price of the securities less discounts and commissions, if any.
In order to comply with the securities laws of
certain states, if applicable, any securities covered by this prospectus must be sold in such jurisdictions only through registered or
licensed brokers or dealers. In addition, in certain states securities may not be sold unless they have been registered or qualified for
sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
In order to facilitate the offering of the securities,
any underwriters may engage in transactions that stabilize, maintain, or otherwise affect the price of the securities or any other securities
the prices of which may be used to determine payments on such securities. Specifically, any underwriters may overallot in connection with
the offering, creating a short position for their own accounts. In addition, to cover overallotments or to stabilize the price of the
securities or of any such other securities, the underwriters may bid for, and purchase, the securities or any such other securities in
the open market. Finally, in any offering of the securities through a syndicate of underwriters, the underwriting syndicate may reclaim
selling concessions allowed to an underwriter or a dealer for distributing the securities in the offering if the syndicate repurchases
previously distributed securities in transactions to cover syndicate short positions, in stabilization transactions, or otherwise. Any
of these activities may stabilize or maintain the market price of the securities above independent market levels. Any such underwriters
are not required to engage in these activities and may end any of these activities at any time.
The applicable prospectus supplement may provide
that the original issue date for your securities may be more than three scheduled business days after the trade date for your securities.
Accordingly, in such a case, if you wish to trade securities on any date prior to the third business day before the original issue date
for your securities, you will be required, by virtue of the fact that your securities initially are expected to settle in more than three
scheduled business days after the trade date for your securities, to make alternative settlement arrangements to prevent a failed settlement.
The securities may be new issues of securities
and may have no established trading market. The securities may or may not be listed on a national securities exchange. We can make no
assurance as to the liquidity of or the existence of trading markets for any of the securities.
In order to comply with the securities laws of
some states, if applicable, the shares of common stock offered by this prospectus must be sold in such jurisdictions only through registered
or licensed brokers or dealers. In addition, in some states the shares of common stock may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.
To the extent required, this prospectus may be
amended or supplemented from time to time to describe a specific plan of distribution.
Transfer Agent and Registrar
The transfer agent and registrar for our common
stock is VStock Transfer, LLC.
LEGAL MATTERS
The validity of the securities that may be offered
hereby will be passed upon for us by Carmel, Milazzo & Feil LLP, New York, New York. Additional legal matters may be passed upon for
us or any underwriters, dealers, or agents by counsel that we will name in the applicable prospectus supplement.
EXPERTS
The consolidated financial statements of Tenon
Medical, Inc. as of and for the years ended December 31, 2022 and 2021 have been incorporated by reference herein and in the registration
statement in reliance on the report of Armanino LLP, an independent registered public accounting firm, given on the authority of said
firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the information requirements
of the Exchange Act and file annual, quarterly, and special reports, proxy statements, and other information with the SEC. Our SEC filings
are available to you on the SEC’s website at www.sec.gov. You may also obtain information about us by visiting our website
at https://www.tenonmed.com. The information contained on or accessible through our website is not incorporated by reference and
is not part of this prospectus.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to
incorporate by reference much of the information that we file with the SEC, which means that we can disclose important information to
you by referring you to those publicly available documents. The information that we incorporate by reference in this prospectus is considered
to be part of this prospectus. This prospectus incorporates by reference the documents listed below (other than any portions of such documents
that are not deemed “filed” under the Exchange Act in accordance with the Exchange Act and applicable SEC rules):
| · | our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 10, 2023; |
|
· |
the
description of our common stock contained in the Registration Statement on Form 8A12B (File No. 001-41364) relating thereto, filed on
April 26, 2022, including any amendment or report filed for the purpose of updating such description; and |
| · | any future filings made with the SEC under Section 13(a), 13(c) or 15(d) of the Exchange Act. |
Certain statements in
and portions of this prospectus update and replace information in the above listed documents incorporated by reference. Likewise, statements
in or portions of a future document incorporated by reference in this prospectus may update and replace statements in and portions of
this prospectus or the above listed documents.
We will provide you without
charge, upon your written or oral request, a copy of any of the documents incorporated by reference in this prospectus, other than exhibits
to such documents which are not specifically incorporated by reference into such documents. Please direct your written or telephone requests
to:
Tenon Medical, Inc.
Attn: Chief Financial
Officer
104 Cooper Court
Los Gatos, California
95032
Telephone: (408) 649-5760
.
TENON MEDICAL, INC.
$50,000,000
Common Stock
Preferred Stock
Warrants
Debt Securities
Rights
Units
PROSPECTUS
May ___, 2023
The information in
this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer
to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT TO COMPLETION,
DATED MAY 4, 2023
PROSPECTUS
Up to $6,700,000
Tenon Medical, Inc.
Common Stock
We have entered into an Equity Distribution Agreement (“ATM Sales
Agreement”) with Maxim Group LLC (the “Sales Agent”) dated May 4, 2023, pursuant to which we may, from time to time,
issue and sell the shares of our common stock, $0.001 par value per share, covered by this prospectus from time to time through or to
the Sales Agent, acting as our agent or principal.
An At-the-Market (“ATM”) program will allow us to raise capital
by selling shares of our common stock in open market transactions at our discretion. Unlike in underwritten public offerings, sales under
ATM programs are not marketed, they are made at prevailing market prices, and they are generally less dilutive to stockholders than marketed
offerings that generate the same net proceeds because (i) they are typically less expensive to transact than marketed offerings and (ii)
they can be executed without a discount to the prevailing market price of the stock that is typical in marketed offerings. Our Board of
Directors has concluded that, at this time, it is in our best interest to have an ATM program available and to be used at our discretion
for capital raising, since it enables us to determine the timing, quantity, and pricing of sales. Under the ATM Sales Agreement, we are
not obligated to sell any shares, but we may issue and sell shares of our common stock having an aggregate gross sales price of up to
$6,700,000 through the Sales Agent.
Our common stock trades on the Nasdaq Capital Market
(“Nasdaq”) under the symbol “TNON.” The last reported sale price of our common stock on Nasdaq on May 3, 2023
was $1.84 per share.
Pursuant to General Instruction I.B.6 of Form
S-3, in no event will we sell our securities in public primary offerings with a value exceeding more than one-third of our public
float in any 12-month period so long as our public float remains below $75.0 million. As of May 4, 2023, the aggregate market value
of our outstanding common stock held by non- affiliates, or public float, was approximately $20,208,990, based on 7,742,908 shares
of our outstanding common stock that were held by non-affiliates on such date and a price of $2.61 per share, which was the price at
which our common stock was last sold on the Nasdaq Capital Market on March 16, 2023, calculated in accordance with General
Instruction I.B.6 of Form S-3. We have not offered any securities pursuant to General Instruction I.B.6 of Form S-3 during the
twelve-month period that ends on and includes the date hereof.
Shares of our common stock covered by this prospectus
may be sold by any method deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act of
1933, as amended (the “Securities Act”). When they receive a sale order from us, the Sales Agents have agreed to use commercially
reasonable efforts consistent with normal trading and sales practices to execute the order on mutually agreed terms. There is no arrangement
for funds to be received in any escrow, trust, or similar arrangement.
The compensation payable to the Sales Agent for sales
of common stock sold pursuant to the ATM Sales Agreement will be 3.0% of the gross proceeds of the sales price of common stock sold. We
anticipate no other commissions or material expenses for sales under the ATM Sales Agreement. The orders will be executed at price limits
imposed by us.
Even though this prospectus does not relate to a marketed
offering of our common stock, in connection with the sale of common stock under the ATM Sales Agreement, the Sales Agents will each be
deemed to be an “underwriter” within the meaning of the Securities Act, and the compensation of the Sales Agent will be deemed
to be underwriting commissions or discounts. We have agreed to indemnify the Sales Agent against certain civil liabilities, including
liabilities under the Securities Act. See the section titled “Plan of Distribution” on page 50 of this prospectus.
Currently, we are an “emerging growth company”
as defined in Section 2(a) of the Securities Act of 1933, as amended, and are subject to reduced public company reporting requirements.
Please read “Implications of Being an Emerging Growth Company.”
You should read carefully and consider the “Risk Factors” referenced
on page 47 of this prospectus and the risk factors described in other documents incorporated by reference herein.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus.
Any representation to the contrary is a criminal offense.
Maxim Group LLC
The date of this prospectus is May ___, 2023.
TABLE OF CONTENTS
PROSPECTUS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement
that we filed with the Securities and Exchange Commission (the “SEC”) utilizing a “shelf” registration process
on May 4, 2023. Under the shelf registration process, we may offer shares of our common stock from time to time under this prospectus
at prices and on terms to be determined by market conditions at the time of offering. This prospectus and the documents incorporated herein
by reference include important information about us, the shares being offered, and other information you should know before investing
in our common stock.
You should rely only on this prospectus and the information
incorporated or deemed to be incorporated by reference in this prospectus. We have not, and the Sales Agents have not, authorized anyone
to provide you with information that is in addition to or different from that contained or incorporated by reference in this prospectus.
We are not, and the Sales Agents are not, offering to sell these securities in any jurisdiction where the offer or sale is not permitted.
You should not assume that the information contained or incorporated by reference in this prospectus is accurate as of any date other
than as of the date of this prospectus or in the case of the documents incorporated by reference, the date of such documents regardless
of the time of delivery of this prospectus or any sale of our common stock. Our business, financial condition, liquidity, results of operations,
and prospects may have changed since those dates.
You should read this prospectus and the documents
incorporated by reference into this prospectus that we may authorize for use in connection with this offering, in their entirety before
making an investment decision. You should also read and consider the information in the documents to which we have referred you in the
sections of this prospectus entitled “Where You Can Find More Information” and “Incorporation of Certain Documents by
Reference.”
We are offering to sell, and seeking offers to buy,
shares of common stock only in jurisdictions where offers and sales are permitted. The distribution of this prospectus and the offering
of the common stock in certain jurisdictions may be restricted by law. Persons outside the United States who come into possession of this
prospectus must inform themselves about, and observe any restrictions relating to, the offering of the common stock and the distribution
of this prospectus outside the United States. This prospectus does not constitute, and may not be used in connection with, an offer to
sell, or a solicitation of an offer to buy, any securities offered by this prospectus by any person in any jurisdiction in which it is
unlawful for such person to make such an offer or solicitation.
We further note that the representations, warranties
and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference into the prospectus
and accompanying prospectus were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose
of allocating risk among the parties to such agreement, and should not be deemed to be a representation, warranty or covenant to you.
Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations,
warranties and covenants should not be relied on as accurately representing the current state of our affairs.
As used in this prospectus, unless the context otherwise
requires, the terms “we,” “us,” “our,” and “our company” mean, collectively, Tenon Medical,
Inc. and its subsidiaries.
PROSPECTUS
SUMMARY
Overview
The following is a summary of selected information
contained elsewhere in this prospectus or incorporated by reference. It does not contain all of the information that you should consider
before buying our securities. You should read this prospectus in its entirety, including the information incorporated by reference herein
and therein.
Introduction
Tenon Medical, Inc. (the “Company”),
was incorporated in the State of Delaware on June 19, 2012 and was headquartered in San Ramon, California until June 2021 when it relocated
to Los Gatos, California. The Company is a medical device company that offers a novel, less invasive approach to the sacroiliac joint
using a single, robust, titanium implant for treatment of the most common types of sacroiliac joint (the “SI-Joint”) disorders
that cause lower back pain. The system features the CATAMARAN™ Fixation Device which passes through both the axial and sagittal
planes of the ilium and sacrum, stabilizing and transfixing the SI joint along its longitudinal axis. The angle and trajectory of the
Catamaran surgical approach is also designed to provide a pathway away from critical neural and vascular structures and into the strongest
cortical bone. The Company received U.S. Food and Drug Administration (“FDA”) clearance in 2018 for The CATAMARANTM
SI-Joint Fusion System (“The CATAMARAN System”). The Company commercially launched The CATAMARAN System nationally in October
2022 at the North American Spine Society meeting held in Chicago. Currently, the Company’s only commercial focus is the US market.
The Opportunity
We estimate that over 30 million American
adults have chronic lower back pain.
.
Published clinical studies have shown that 15%
to 30% of all chronic lower back pain is associated with the SI-Joint. For patients whose chronic lower back pain stems from the Sacroiliac
Joint (“SI-Joint”), our experience in both clinical trials and commercial settings indicates The CATAMARAN System could be
beneficial for patients who are properly diagnosed and screened for surgery by trained healthcare providers.
In 2019, approximately 475,000 patients in the
United States were estimated to have received an aesthetic injection to temporarily alleviate pain emanating from the SI-Joint and/or
to diagnose SI-Joint pain. Additionally, several non-surgical technologies have been introduced in the past 10 years to address patients
who do not respond to injection therapy, including systemic oral medications and opioids.
To date, the penetration of a surgical solution
for this market has been relatively low (5-7%). We believe this is due to complex surgical approaches and suboptimal implant design of
existing options. The penetration of this market with an optimized surgical solution is Tenon’s focus.
We believe the SI-Joint is the last major joint
to be successfully addressed by the orthopedic implant industry. Studies have shown that disability resulting from disease of the SI-Joint
is comparable to the disability associated with a number of other serious orthopedic conditions, such as knee and hip arthritis and degenerative
disc disease, each of which has surgical solutions where an implant is used, and a multi-billion-dollar market exists.
The SI-Joint
The SI-Joint is a strong weight bearing synovial
joint situated between the lumbar spine and the pelvis and is aligned along the longitudinal load bearing axis of the human spine when
in an upright posture. It functions as a force transfer conduit where it transfers axial loads bi-directionally from the spine to the
pelvis and lower extremities and allows forces to be transmitted from the extremities to the spine. It also provides load sharing between
the hip and spine to contribute towards attenuation of impact shock and stress from activities of daily living.
The SI-Joint is a relatively immobile joint that
connects the sacrum (the spinal segment that is attached to the base of the lumbar spine at the L5 vertebra) and the ilium of the pelvis.
Each SI-Joint is approximately 2mm wide and irregularly shaped.
Motion of the SI-Joint features vertical shear
and rotation. Although the rotational forces about the SI-Joint are relatively low, repetitive motions created by daily activities such
as walking, jogging, twisting at the hips, and jumping can increase the stresses on the SI-Joint. If the SI-Joint is compromised through
injury or degeneration, the load bearing and motion restraints from the surrounding anatomical structures of the SI-Joint will be compromised
resulting in abnormal stress transfers across the joint to these structures, thereby further augmenting the degenerative cascade of the
SI-Joint. Eventual pain and cessation of an individual’s normal activities due to a painful and unstable SI-Joint have led to an
increase in the recent development of SI-Joint stabilization devices.
Non-Surgical Treatment of Sacroiliac Joint
Disease
Several non-surgical treatments exist for suspected sacroiliac
joint pain. These conservative steps often provide desired relief for the patient. Non-surgical treatments include:
| · | Drug Therapy
: including opiates and non-steroidal anti-inflammatory medications. |
| · | Physical Therapy
: which can involve exercises as well as massage. |
| · | Intra-Articular Injections of Steroid Medications
: which are typically performed by physicians who specialize in pain treatment or anesthesia. |
| · | Radiofrequency Ablation
: or the cauterizing of the lateral branches of the sacral nerve roots. |
When conservative steps fail to deliver sustained
pain relief and return to quality of life, specific diagnostic protocols are utilized to explore if a surgical option should be considered.
Diagnosis
Historically, diagnosing pain from the SI-Joint
was not routinely a focus of orthopedic or neurosurgery training during medical school or residency programs. Due to its invasiveness,
post-operative pain, and muscle disruption along with a difficult procedure overall, the open SI-Joint fusion procedure was rarely taught
in these settings.
The emergence of various SI-Joint surgical technologies
has generated a renewed discussion of SI-Joint issues. Of particular focus is the diagnostic protocol utilized to properly select patients
for S-I Joint surgery. Patients with low back pain typically start with primary care physicians who often refer to pain specialists. Here,
the patient will go through traditional physical therapy combined with oral medications (anti-inflammatory, narcotic, etc.). If the patient
fails to respond to these steps the pain specialist may move to therapeutic injections of the SI-Joint. These injections may serve to
lessen inflammation to the point that the patient is satisfied. However, the impact from these injections is often transient. In this
case the patient is often referred to a trained physician to determine if the patient may be a candidate for surgical intervention. A
series of provocative tests in clinic, combined with a specific injection protocol to isolate the SI-Joint as the pain generator is then
utilized to confirm the need for surgical intervention. Published literature has shown this technique to be a very effective step to determine
the best treatment to alleviate pain.
Limitations of Existing Treatment Options
Surgical fixation and fusion of the SI-Joint with
an open surgical technique was first reported in 1908, with further reports in the 1920s. The open procedure uses plates and screws, requires
a 6 to 12-inch incision and is extremely invasive. Due to the invasiveness and associated morbidity, the use of this
procedure is limited to cases involving significant trauma, tumor, etc.
Less invasive surgical options along with implant
design began to emerge over the past 15 years. These options feature a variety of approaches and implant designs and have been met with
varying degrees of adoption. Lack of a standard and accepted diagnostic approach, complexity of approach, high morbidity of approach,
abnormally high complication rates and inability to radiographically confirm fusion have all been cited as reasons for low adoption of
these technologies.
The CATAMARAN™ SI-Joint Fusion System
Solution
Until October 2022 Tenon sold The CATAMARAN™
SI-Joint Fusion System (“The CATAMARAN System”) to a limited number of clinician advisors to refine the product for a full
commercial launch. In October 2022 Tenon initiated a full commercial launch at the NASS meeting in Chicago. The CATAMARAN System includes
instruments and implants designed to prepare and fixate the SI-Joint for fusion. We believe The CATAMARAN System will address a large
market opportunity with a superior product and is distinct from other competitive offerings in the following ways:
| · | Inferior Posterior Sacroiliac Fusion Approach |
| · | Reduced Approach Morbidity |
| · | Direct And Visualized Approach to the SI-Joint |
| · | Single Implant Technique |
| · | Insertion Trajectory Away from the Neural Foramen |
| · | Insertion Trajectory Away from Major Vascular Structures |
| · | Autologous Bone Grafting in the Ilium, Sacrum and Bridge |
| · | Radiographic Confirmation of Bridging Bone Fusion of the SI-Joint |
The fixation device and its key features are shown
below:
|
Key Features
“Pontoon” in the ilium
“Pontoon” in the sacrum
“Pontoons and Bridge” filled with autologous bone from
drilling process
Leading edge osteotome creates defect and facilitates ease of insertion |
The CATAMARAN System is a singular implant designed
with several proprietary components which allow for it to be explicitly formatted to transfix the SI-Joint with a single approach and
implant. This contrasts with several competitive implant systems that require multiple approach pathways and implants to achieve fixation.
In addition, the Inferior Posterior approach is designed to be direct to the joint and through limited anatomical structures which may
minimize the morbidity of the approach. The implant features a patented dual pontoon open cell design which enables the clinician to pack
the pontoons with the patient’s own autologous bone designed to promote bone fusion across the joint. The CATAMARAN System is designed
specially to resist vertical shear and rotation of the joint in which it was implanted, helping stabilize the joint in preparation for
eventual fusion.
The instruments we have developed are proprietary
to The CATAMARAN System and specifically designed to facilitate an Inferior Posterior approach that is unique to the system.
Tenon also has developed a proprietary 2D placement
protocol as well as a protocol for 3D navigation utilizing the latest techniques in spine surgery. These Tenon advancements are intended
to further enhance the safety of the procedure and encourage more physicians to adopt the procedure.
The CATAMARAN System, as mentioned previously,
is placed in the densest aspect of the SI-Joint as confirmed by the pre-op planning images below:
|
|
Surgical Plan Key:
Yellow: Guidewire
Purple: Lateral Pontoon (Ilium)
Green: Medial Pontoon (Sacrum)
|
| |
|
| |
Notes:
Upper Right Quadrant: The green and purple pontoons
represent the placement in the dense bone inferior – contrasted with the dorsal gap superiorly where competitive systems are most
often placed.
Lower Right Quadrant: The yellow and purple outlines
represent The CATAMARAN System pontoons, illustrating the angle of insertion is away from the sacral neuro foramen providing
for a much safter trajectory for device implantation. |
The Procedure
We believe The CATAMARAN System and its differentiated
characteristics allow for an efficient and effective procedure designed to deliver short-term stabilization and long-term fusion that
can be confirmed radiographically. Shown below is an illustration demonstrating the unique placement of The CATAMARAN System inserted
Inferior Posterior and coming directly down to and transfixing the joint
|
|
|
The CATAMARAN System procedure is typically performed
under general anesthesia using a specially designed instrument set we provide to prepare for the Inferior Posterior access to the SI-Joint.
Specially designed imaging and navigation protocols are designed to ensure the clinician has the proper Entry Point, Trajectory, Angle
and Depth (ETAD™) so that the pontoons of The CATAMARAN System are placed for maximum fixation. The CATAMARAN System incorporates
two pontoons and is designed so that when the system is impacted into the bone one pontoon is on the Illum side and the other is in the
Sacrum side with the bridge spanning the joint, preventing shear and rotation of the joint. The device also features an open cell design
where the patient’s own (autologous) bone is packed into the pontoons and the bridge to facilitate fusion across the joint. The
leading edge of the bridge is designed to act as an osteotome, providing a self-created deficit upon insertion. These features are designed
to create an ideal environment for bone ingrowth and fusion. Below is a fluoroscopic image of an implanted CATAMARAN Fixation Device spanning
the SI-Joint.
Tenon believes the surgical approach and implant
design it has developed, along with the 2D and 3D protocols for proper implantation will be received well by the clinician community who
have been looking for a next generation device. Our initial clinical results indicate that The CATAMARAN System is promoting fusion across
the joint as evidenced by post-op CT scans (the recognized gold standard widely accepted by the Clinical community).
Post-Op fluoroscopic image of
implant spanning the SI-Joint |
|
6-Month CT-Scan showing clear
bridging bone fusion |
|
|
|
A preliminary 18 case series (Michael Joseph Chaparro,
MD, F.A.A.N.S., F.A.C.S.) has documented that The CATAMARAN System does in fact promote fusion across the SI-Joint, which many of our
competitors have not been able to demonstrate. While products from some of our competitors use screws and triangular wedges to treat the
SI-Joint, most do not effectively resist the vertical shear and twisting within the joint. This 18 patient series was presented at the
North American Spine Society Annual Meeting in Chicago, IL in October 2022.
An independent biomechanical study (Lisa Ferrara,
Ph.D. OrthoKinetic Technologies, LLC now part of Element) demonstrated that a single CATAMARAN SIJ Fixation Device was superior to predicate
device in the areas of Fixation Strength, Shear Stiffness, Dynamic Endurance and Pullout Strength. We hold issued patents on The CATAMARAN
System and its unique features including the dual pontoons and the open cell structure for bone graft packing. We also hold an issued
patent for the method of placing The CATAMARAN System into the SI-Joint where one pontoon is in the ilium and the other in the sacrum.
The CATAMARAN System’s unique design has
already demonstrated radiographically confirmed fusion in initial patients. We believe that this beneficial advantage along with a simpler,
safer, and less painful procedure will make this the procedure of choice for most physicians. Tenon has initiated post market, IRB controlled
clinical trials to demonstrate this technology delivers on these advantages.
Corporate Information
Our principal executive offices are located at
104 Cooper Court, Los Gatos, California 95032. Our website address is www.tenonmed.com. The information included on our website or in
any social media associated with the Company is not part of this prospectus.
Implications of Being an Emerging Growth Company
We are an “emerging growth company,”
as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We will remain an emerging growth company
until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common stock
pursuant to an effective registration statement under the Securities Act; (ii) the last day of the fiscal year in which we have total
annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during
the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules. We expect
that we will remain an emerging growth company for the foreseeable future, but cannot retain our emerging growth company status indefinitely
and will no longer qualify as an emerging growth company on or before the last day of the fiscal year following the fifth anniversary
of the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act. For so long
as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that
are applicable to other public companies that are not emerging growth companies.
These exemptions include:
| · | being permitted to provide only two years of audited financial statements, in addition to any required
unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” disclosure; |
| · | not being required to comply with the requirement of auditor attestation of our internal controls over
financial reporting; |
| · | not being required to comply with any requirement that may be adopted by the Public Company Accounting
Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information
about the audit and the financial statements; |
| · | reduced disclosure obligations regarding executive compensation; and |
| · | not being required to hold a nonbinding advisory vote on executive compensation and shareholder approval
of any golden parachute payments not previously approved. |
We have taken advantage of certain reduced reporting
requirements in this prospectus. Accordingly, the information contained herein may be different than the information you receive from
other public companies in which you hold stock.
An emerging growth company can take advantage
of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply
to private companies. We have irrevocably elected to avail ourselves of this extended transition period and, as a result, we will not
be required to adopt new or revised accounting standards on the dates on which adoption of such standards is required for other public
reporting companies.
We are also a “smaller reporting company”
as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and have elected
to take advantage of certain of the scaled disclosure available for smaller reporting companies.
THE OFFERING
| Common stock offered by us |
|
Shares of common stock having an aggregate gross sales price of up to $6,700,000 |
| |
|
|
| Common stock outstanding after this offering |
|
Up to 14892,603 shares, assuming sales of 3,641,304 shares of our common stock in this offering at an offering price of $1.84 per share, which was the last reported sale price of our common stock on Nasdaq on May 3, 2023. The actual number of shares issued will vary depending on how many shares we choose to sell and the sales price under this offering. |
| |
|
|
| Plan of Distribution |
|
“At the market offering” that may be made from time to time for our common stock in the United States through the Sales Agent, acting as sales agent or principal. See the section entitled “Plan of Distribution” below. |
| |
|
|
| Use of Proceeds |
|
We intend to use the net proceeds from this offering to hire additional employees, continue the commercial launch of our product including training clinicians on The CATAMARAN System procedure, continue clinical marketing studies that are focused on capturing post-market safety and efficacy data, gathering system feedback and initiating product refinements, other sales and marketing activities and for working capital and general corporate purposes. We may temporarily invest the net proceeds in investment-grade, interest-bearing securities until they are used for their stated purpose. We have not determined the amount of net proceeds to be used specifically for such purposes. As a result, we will retain broad discretion over the allocation of net proceeds. |
| |
|
|
| Risk factors |
|
Your investment in shares of our common stock involves substantial risks. You should consider the “Risk Factors” included and incorporated by reference in this prospectus, including the risk factors incorporated by reference from our filings with the SEC. |
| |
|
|
| Nasdaq symbol |
|
TNON |
The number of shares of our common stock to be outstanding
after this offering is based on approximately 11,251,299 shares of our common stock outstanding as of May 4, 2023. and does not include:
| · | 96,000 shares issuable upon the exercise of outstanding warrants with a
weighted-average exercise price of $5.00 per share; and |
| · | 504,223 shares issuable upon the exercise of outstanding vested stock options
with a weighted-average exercise price of $5.01 per share |
RISK FACTORS
Before purchasing any of the securities you should
carefully consider the risk factors relating to our company described below and incorporated by reference in this prospectus from our
Annual Report on Form 10-K for the year ended December 31, 2022, as well as the risks, uncertainties, and additional information set forth
in other documents incorporated by reference in this prospectus. For a description of these reports and documents, and information about
where you can find them, see “Where You Can Find More Information” and “Incorporation of Certain Documents By Reference.”
Additional risks not presently known or that we presently consider to be immaterial could subsequently materially and adversely affect
our financial condition, results of operations, business, and prospects.
Risks Relating to this Offering
We may allocate the net proceeds from this offering
in ways that you and other stockholders may not approve.
We currently intend to use the net proceeds of this
offering, if any, for general corporate purposes, which may include working capital, capital expenditures, repayment and refinancing of
debt, research and development expenditures, acquisitions of additional companies or technologies, and investments. This expected use
of the net proceeds from this offering represents our intentions based upon our current plans and business conditions. The amounts and
timing of our actual expenditures may vary significantly depending on numerous factors. Because of the number and variability of factors
that will determine our use of the proceeds from this offering, their ultimate use may vary substantially from their currently intended
use. As a result, we will retain broad discretion over the allocation of the net proceeds from this offering and could spend the proceeds
in ways that do not necessarily improve our operating results or enhance the value of our common stock. See “Use of Proceeds.”
You may experience immediate and substantial
dilution.
The offering price per share in this offering may
exceed the net tangible book value per share of our common stock outstanding prior to this offering. Assuming the sale of shares of our
common stock in this offering in the aggregate amount of $6,700,000 at price of $1.84 per share, based on the assumed public offering
price of $1.84 per share, which was the last reported sale price of our common stock on Nasdaq on May 3, 2023, and net tangible book value
per share of our common stock of $0.56 as of December 31. 2022, you will suffer immediate and substantial dilution of $0.99 per share
representing the difference between our as adjusted net tangible book value per share as of December 31, 2022 after giving effect to this
offering and the assumed offering price. To the extent shares are issued under outstanding options or warrants, you will incur further
dilution. See “Dilution” for a more detailed description of the dilution to new investors in the offering.
The
sale of our common stock in this offering and any future sales of our common stock may depress our stock price and our ability to raise
funds in new stock offerings.
We may issue common stock from time to time in
connection with this offering. This issuance from time to time of these new shares of our common stock, or our ability to issue these
shares of common stock in this offering, could result in resales of our common stock by our current stockholders concerned about the potential
dilution of their holdings. In addition, sales of our common stock in the public market following this offering could lower the market
price of our common stock. Sales may also make it more difficult for us to sell equity securities or equity-related securities in the
future at a time and price that our management deems acceptable, or at all. We cannot predict the number of these shares that might be
resold or the effect that future sales of our shares of common stock would have on the market price of our shares of common stock.
We plan to sell shares of our common stock
in “at the market offerings” and investors who buy shares of our common stock at different times will likely pay different
prices.
Investors who purchase shares of our common stock
in this offering at different times will likely pay different prices and may experience different outcomes in their investment results.
We will have discretion, subject to the effect of market conditions, to vary the timing, prices, and numbers of shares sold in this offering.
Investors may experience a decline in the value of their shares of our common stock. The trading price of our common stock has been volatile
and subject to wide fluctuations. Many factors could have an impact on the market price of our common stock, including the factors described
above and in the accompanying prospectus and those incorporated by reference herein and therein.
We cannot predict the actual number of shares of our common stock
that we will sell under the ATM Sales Agreement, or the gross proceeds resulting from those sales.
Subject to certain limitations in the ATM Sales
Agreement and compliance with applicable law, we have the discretion to deliver a placement notice to the Sales Agents at any time throughout
the term of the ATM Sales Agreement. The number of shares of our common stock that are sold through the Sales Agents will fluctuate based
on a number of factors, including the market price of our common stock during the sales period, the limits we set with the Sales Agents
in any applicable placement notice, and the demand for our common stock during the sales period. Because the price per share of each share
sold will fluctuate during the sales period, it is not possible to predict the number of shares that will be sold or the gross proceeds
we will raise in connection with those sales.
Sales of a significant number of shares of our
common stock in the public markets, or the perception that such sales could occur, could depress the market price of our common stock.
Sales of a significant number of shares of our common
stock in the public markets, or the perception that such sales could occur as a result of our utilization of our shelf registration statement,
our ATM Sales Agreement with Maxim or otherwise could depress the market price of our common stock and impair our ability to raise capital
through the sale of additional equity securities. We cannot predict the effect that future sales of our common stock or the market perception
that we are permitted to sell a significant number of our securities would have on the market price of our common stock.
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
This prospectus, the documents incorporated by
reference herein and therein, and other written and oral statements we make from time to time contain certain “forward-looking”
statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). You can identify these forward-looking statements by the fact they use words such as “could,”
“would,” “should,” “expect,” “anticipate,” “estimate,” “target,”
“may,” “project,” “guidance,” “intend,” “plan,” “believe,” “will,”
“potential,” “opportunity,” “future,” and other words and terms of similar meaning and expression
in connection with any discussion of future operating or financial performance. You can also identify forward-looking statements by the
fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations
and involve inherent risks and uncertainties, including factors that could delay, divert, or change any of them, and could cause actual
outcomes to differ materially from current expectations. These statements are likely to relate to, among other things, our business strategy,
our research and development, our product development efforts, our ability to commercialize our product candidates, the activities of
our licensees, our prospects for initiating partnerships or collaborations, the timing of the introduction of products, the effect of
new accounting pronouncements, uncertainty regarding our future operating results and our profitability, anticipated sources of funds
as well as our plans, objectives, expectations, and intentions.
We have included more detailed descriptions of
these risks and uncertainties and other risks and uncertainties applicable to our business that we believe could cause actual results
to differ materially from any forward-looking statement in the “Risk Factors” sections of this prospectus and the documents
incorporated by reference herein including, but not limited to, the risk factors incorporated by reference from our filings with the SEC.
We encourage you to read those descriptions carefully. Although we believe we have been prudent in our plans and assumptions, no assurance
can be given that any goal or plan set forth in forward-looking statements can be achieved. We caution investors not to place significant
reliance on forward-looking statements; such statements need to be evaluated in light of all the information contained and incorporated
by reference in this prospectus. Furthermore, the statements speak only as of the date of each document, and we undertake no obligation
to update or revise these statements.
USE OF PROCEEDS
We may issue and sell shares of common stock having
aggregate sales proceeds of up to $6,700,000 from time to time, before deducting sales agent commissions and expenses. The amount of proceeds
from this offering will depend upon the number of shares of our common stock sold and the market price at which they are sold. Because
there is no minimum offering amount required as a condition of this offering, the actual total public offering amount, commissions and
proceeds to us, if any, are not determinable at this time. There can be no assurance that we will be able to sell any shares under or
fully utilize the ATM Sales Agreement.
The principal purposes of this offering are to increase
our capitalization and financial flexibility, increase our visibility in the marketplace and create a public market for our common stock.
As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to us from this offering.
However, we currently intend to use the net proceeds from this offering to hire additional employees, continue the commercial launch of
our product including training clinicians on The CATAMARAN System procedure, continue clinical marketing studies that are focused on capturing
post-market safety and efficacy data, gathering system feedback and initiating product refinements, other sales and marketing activities
and for working capital and general corporate purposes. See “Business—Research & Development.”
We will retain broad discretion in the allocation
of the net proceeds from this offering and could utilize the proceeds in ways that do not necessarily improve our results of operations
or enhance the value of our common stock.
DILUTION
If you invest in our common stock, your ownership
interest will be diluted to the extent of the difference between the public offering price per share and the as-adjusted net tangible
book value per share after this offering. We calculate net tangible book value per share by dividing the net tangible book value, which
is tangible assets less total liabilities, by the number of outstanding shares of our common stock. Dilution with respect to net tangible
book value per share represents the difference between the amount per share paid by purchasers of shares of common stock in this offering
and the net tangible book value per share of our common stock immediately after this offering. The net tangible book value of our common
stock as of December 31, 2022, was $6,252,000 or approximately $0.56 per share of common stock.
After giving effect to the sale of 3,641,304 shares
of our common stock pursuant to this prospectus in the aggregate amount of $6,700,000 at an assumed price of $1.84 per share, which was
the last reported sale price of our common stock on Nasdaq on May 3, 2023, and after deducting commissions and estimated offering expenses
payable by us (estimated at $371,000), our as-adjusted net tangible book value as of December 31, 2022 would have been approximately $12,581,000
or approximately $0.85 per share. This represents an immediate increase in net tangible book value of approximately $0.29 per share of
common stock to our existing stockholders and an immediate dilution in as-adjusted net tangible book value of approximately $0.99 per
share to purchasers of our common stock in this offering, as illustrated by the following table:
| Assumed offering price per share of common stock | |
| | | |
$ | 1.84 | |
| Net tangible book value per share as of December 31, 2022 | |
$ | 0.56 | | |
| | |
| Increase in net tangible book value per share attributable to this offering | |
| 0.29 | | |
| | |
| As adjusted net tangible book value per share after giving effect to this offering | |
| | | |
| 0.85 | |
| Dilution per share to new investors participating in this offering | |
| | | |
$ | 0.99 | |
The table above assumes, for illustrative purposes,
that an aggregate of 3,641,304 shares of our common stock are sold at an offering price of $1.84 per share, the last reported sale price
of our common stock on the Nasdaq Capital Market on May 3, 2023, for aggregate gross proceeds of $6,700,000. However, the shares sold
in this offering, if any, will be sold from time to time at various prices.
The above discussion and table are based on approximately
11,236,801shares of our common stock outstanding as of December 31, 2022 and does not include:
| |
· |
96,000 shares issuable upon the exercise of outstanding warrants with a weighted-average exercise price of $5.00 per share; and |
| |
· |
456,874 shares issuable upon the exercise of outstanding vested stock options with a weighted-average exercise price of $4.89 per share |
To the extent that any of our outstanding options or warrants are exercised,
we grant additional options or other awards under our stock incentive plan or issue additional warrants, or we issue additional shares
of common stock in the future, there may be further dilution.
PLAN OF DISTRIBUTION
Pursuant to the ATM Sales Agreement, we may issue
and sell from time to time shares of our common stock having an aggregate gross sales price of up to $6,700,000 through the Sales Agent,
acting as sales agent or principal, subject to certain limitations. The ATM Sales Agreement has been filed with the SEC and is incorporated
by reference into this prospectus. This is a brief summary of the material terms of the ATM Sales Agreement and does not purport to be
a complete statement of its terms and conditions.
Each time that we wish to sell common stock under
the ATM Sales Agreement, we will provide an agent designated by the Company as sole executing agent with a placement notice describing
the number or dollar value of shares to be issued, the time period during which sales are requested to be made, any limitation on the
number of shares that may be sold in any one day, and any minimum price below which sales may not be made.
Upon receipt of a placement notice from us, and subject
to the terms and conditions of the ATM Sales Agreement, the Sales Agent have agreed to use its commercially reasonable efforts consistent
with its normal trading and sales practices and applicable state and federal laws, rules, and regulations, and the rules of Nasdaq to
sell such shares up to the amount specified. The settlement between us and the Sales Agent of each sale will occur on the second trading
day following the date on which the sale was made or on some other date that is agreed upon by us and the Sales Agents in connection with
a particular transaction. The obligation of the Sales Agent under the ATM Sales Agreement to sell our common stock pursuant to a placement
notice is subject to a number of conditions.
We will pay the Sales Agent a commission of 3.0% of
the aggregate gross proceeds from each sale of our common stock under the ATM Sales Agreement. The Sales Agent may also receive customary
brokerage commissions from purchasers of the common stock in compliance with FINRA Rule 2121. The Sales Agent may effect sales to or through
dealers, and such dealers may receive compensation in the form of discounts, concessions or commissions from the Sales Agents and/or purchasers
of shares of common stock for whom they may act as agents or to whom they may sell as principal. In addition, we have agreed to reimburse
legal expenses of the Sales Agent in an amount not to exceed $50,000 in connection with entering into the ATM Sales Agreement plus up
to $3,000 per calendar quarter. We estimate that the total expenses for the offering, excluding compensation and reimbursements payable
to the Sales Agent under the terms of the ATM Sales Agreement, will be approximately $150,000.
The actual proceeds to us will vary depending on the
number of shares sold and the prices of such sales. Because there is no minimum offering amount required as a condition to close this
offering, the actual total public offering amount, commissions, and proceeds to us, if any, are not determinable at this time.
In connection with the sale of our common stock contemplated
in this prospectus, the Sales Agent will be deemed to be “underwriter” within the meaning of the Securities Act, and the compensation
paid to the Sales Agent will be deemed to be underwriting commissions or discounts. We have agreed to indemnify the Sales Agent against
certain civil liabilities, including liabilities under the Securities Act.
Sales of our common stock as contemplated in this
prospectus will be settled through the facilities of The Depository Trust Company or by such other means as we and the Sales Agents may
agree upon. There is no arrangement for funds to be received in escrow, trust, or similar arrangement.
The offering of our common stock pursuant to the ATM
Sales Agreement will terminate on the earlier of (1) the issuance and sale of all of our common stock subject to the ATM Sales Agreement,
or (2) termination of the ATM Sales Agreement by us or the Sales Agent.
The Sales Agent and its affiliates may in the future
provide various investment banking, commercial banking and other financial services for us and our affiliates, for which services they
may in the future receive customary fees. To the extent required by Regulation M, the Sales Agent will not engage in any market making
activities involving our common stock while the offering is ongoing under this prospectus.
This prospectus in electronic format may be made available
on a website maintained by the Sales Agent and the Sales Agent may distribute this prospectus electronically.
Our common stock is traded on the Nasdaq under the
symbol “TNON”.
The foregoing does not purport to be a complete statement
of the terms and conditions of the ATM Sales Agreement. A copy of the ATM Sales Agreement is attached hereto as an exhibit.
LEGAL MATTERS
The validity of the securities that may be offered
hereby will be passed upon for us by Carmel, Milazzo & Feil LLP, New York, New York. Maxim is being represented in connection with
this offering by Ellenoff Grossman & Schole LLP, New York, New York.
EXPERTS
The consolidated financial statements of Tenon
Medical, Inc. as of December 31, 2022 and 2021 and for each of the years then ended, incorporated in this prospectus by reference to Tenon
Medical, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022, have been so incorporated in reliance on the report
of Armanino LLP, an independent registered public accounting firm, as set forth in their report thereon, given on the authority of said
firm as experts in accounting and auditing. The audit report contains an emphasis of matter paragraph that states there is substantial
doubt about Tenon Medical Inc.’s ability to continue as a going concern. The consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the
information requirements of the Exchange Act and file annual, quarterly, and special reports, proxy statements, and other information
with the SEC. Our SEC filings are available to you on the SEC’s website at www.sec.gov. D You may also obtain information
about us by visiting our website at https://www.tenonmed.com. The information contained on or accessible through our website is
not incorporated by reference and is not part of this prospectus.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to
incorporate by reference much of the information that we file with the SEC, which means that we can disclose important information to
you by referring you to those publicly available documents. The information that we incorporate by reference in this prospectus is considered
to be part of this prospectus. This prospectus incorporates by reference the documents listed below (other than any portions of such documents
that are not deemed “filed” under the Exchange Act in accordance with the Exchange Act and applicable SEC rules):
| · | our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March
10, 2023; |
| · | the description of our common stock contained in the Registration Statement on Form 8A12B (File No. 001-41364)
relating thereto, filed on April 26, 2022, including any amendment or report filed for the purpose of updating such description; and |
| · | any future filings made with the SEC under Section 13(a), 13(c) or 15(d) of the Exchange Act. |
Certain statements in
and portions of this prospectus update and replace information in the above listed documents incorporated by reference. Likewise, statements
in or portions of a future document incorporated by reference in this prospectus may update and replace statements in and portions of
this prospectus or the above listed documents.
We will provide you without
charge, upon your written or oral request, a copy of any of the documents incorporated by reference in this prospectus, other than exhibits
to such documents which are not specifically incorporated by reference into such documents. Please direct your written or telephone requests
to:
Tenon Medical, Inc.
Attn: Chief Financial
Officer
104 Cooper Court
Los Gatos, California
95032
Telephone: (408) 649-5760
Up to $6,700,000
TENON MEDICAL, INC.
Common Stock
PROSPECTUS
Maxim Group LLC
May ___ , 2023
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
The following table sets forth the various expenses in connection with
the registration of the securities offered hereby. We will bear all of these expenses. All amounts are estimated except for the SEC registration
fee:
| Item | |
Amount | |
| SEC registration fee | |
$ | 5,510 | |
| FINRA filing fee | |
$ | * | |
| Legal fees and expenses | |
$ | 75,000 | |
| Accounting fees and expenses | |
$ | 20,000 | |
| Printing and related expenses | |
$ | 5,000 | |
| Miscellaneous | |
| 4,490 | |
| Total | |
$ | 110,000 | |
* Expenses cannot be estimated at this time.
Item 15. Indemnification of Directors and Officers
Section 102 of the General
Company Law of the State of Delaware (“DGCL”) permits a Company to eliminate the personal liability of directors of a Company
to the Company or its stockholders for monetary damages for a breach of fiduciary duty as a director, except where the director breached
his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment
of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our charter,
as amended provides that no director of the Company shall be personally liable to it or its stockholders for monetary damages for any
breach of fiduciary duty as a director, notwithstanding any provision of law imposing such liability, except to the extent that the DGCL
prohibits the elimination or limitation of liability of directors for breaches of fiduciary duty.
Section 145 of the DGCL
provides that a Company has the power to indemnify a director, officer, employee, or agent of the Company, or a person serving at the
request of the Company for another Company, partnership, joint venture, trust or other enterprise in related capacities against expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection
with an action, suit or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed
action, suit or proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company, and, in any criminal action or proceeding, had no reasonable cause to believe
his conduct was unlawful, except that, in the case of actions brought by or in the right of the Company, no indemnification shall be made
with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company unless and only
to the extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability but in view
of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court
of Chancery or such other court shall deem proper.
Our charter, as amended provides that we will
indemnify to the fullest extent permitted from time to time by the DGCL or any other applicable laws as presently or hereafter in effect,
any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, including, without limitation, an action by or in the right of the Company,
by reason of his acting as a director or officer of the Company or any of its subsidiaries (and the Company, in the discretion of the
Board of Directors, may so indemnify a person by reason of the fact that he is or was an employee or agent of the Company or any of its
subsidiaries or is or was serving at the request of the Company in any other capacity for or on behalf of the Company) against any liability
or expense actually and reasonably incurred by such person in respect thereof; provided,
however, the Company shall be required to indemnify an officer or director in connection with an action, suit or proceeding
(or part thereof) initiated by such person only if (i) such action, suit or proceeding (or part thereof) was authorized by the Board of
Directors and (ii) the indemnification does not relate to any liability arising under Section 16(b) of the Exchange Act, as amended, or
any rules or regulations promulgated thereunder. Such indemnification is not exclusive of any other right to indemnification provided
by law or otherwise.
If a claim is not paid in full by the Company,
the claimant may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim and, if successful in
whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting such claim. It shall be a defense to any such
action (other than an action brought to enforce a claim for expenses incurred in defending any proceeding in advance of its final disposition
where any undertaking required by the By-laws of the Company has been tendered to the Company) that the claimant has not met the standards
of conduct which make it permissible under the DGCL for the Company to indemnify the claimant for the amount claimed, but the burden of
proving such defense shall be on the Company. Neither the failure of the Company (including its Board of Directors, legal counsel, or
its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper
in the circumstances because he or she has met the applicable standard of conduct set forth in the DGCL, nor an actual determination by
the Company (including its Board of Directors, legal counsel, or its stockholders) that the claimant has not met such applicable standard
of conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct.
Indemnification shall include payment by the Company of expenses in defending an action or proceeding in advance of the final disposition
of such action or proceeding upon receipt of an undertaking by the person indemnified to repay such payment if it is ultimately determined
that such person is not entitled to indemnification.
In any underwriting agreement
we enter into in connection with the sale of common stock being registered hereby, the underwriters will agree to indemnify, under certain
conditions, us, our directors, our officers and persons who control us within the meaning of the Securities Act of 1933, as amended, or
the Securities Act, against certain liabilities.
These indemnification provisions may be sufficiently broad to permit
indemnification of our directors and officers for liabilities (including reimbursement of expenses incurred) arising under the Securities
Act.
Item 16. Exhibits
The following Exhibits are filed herewith or incorporated
herein by reference:
EXHIBIT INDEX
| * | Incorporated by reference to the Registrant’s Registration Statement No. 333-260931, filed on April 20, 2022 |
| ** | To be filed, if necessary, by post-effective amendment to this registration statement or as an exhibit to a current report of the
registrant on Form 8-K and incorporated herein by reference. |
Item 17. Undertakings
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers
or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any
facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth in this registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed
that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the
form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no
more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table
in the effective registration statement;
(iii) To include any material information
with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information
in this registration statement;
Provided, however, That Paragraphs
(a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 or Form F-3 and the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission
by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in
the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability
under the Securities Act of 1933 to any purchaser:
(i) If the registrant is relying on
Rule 430B:
(A) Each prospectus filed by the registrant
pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part
of and included in the registration statement; and
(B) Each prospectus required to be filed
pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made
pursuant to Rule 415 (a)(1)(i), (vii) or (x) for the purpose of providing the information required by section 10(a) of the Securities
Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus
is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus.
As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be
deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that
prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference
into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract
of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that
was part of the registration statement or made in any such document immediately prior to such effective date.
(5) That, for the purpose of determining liability
of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in
an offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method
used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to
such purchaser:
(i) Any preliminary prospectus or prospectus
of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating
to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free
writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and
(iv) Any other communication that is
an offer in the offering made by the undersigned registrant to the purchaser.
(b) The undersigned registrant hereby further
undertakes that, for the purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s
annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of
an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated
by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered herein,
and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(h) Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication
of such issue.
(j) The undersigned registrant hereby undertakes to file an application
for the purpose of determining the eligibility of the trustee to act under subsection (a) of section 310 of the Trust Indenture Act (“Act”)
in accordance with the rules and regulations prescribed by the Commission under section 305(b)(2) of the Act.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Los
Gatos, State of California, on May 4, 2023.
| |
TENON MEDICAL, INC. |
| |
|
| |
By: |
/s/ Steven M. Foster |
| |
|
Steven M. Foster |
| |
|
Chief Executive Officer and President
(Principal Executive Officer) |
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Steven M. Foster and Steven Van Dick his true and lawful attorney-in-fact,
with full power of substitution and re-substitution for him and in his name, place and stead, in any and all capacities to sign any and
all amendments including pre- and post-effective amendments to this registration statement, any subsequent registration statement for
the same offering which may be filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and pre- or post-effective
amendments thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities
and Exchange Commission, hereby ratifying and confirming all that said attorney-in-fact or his substitute, each acting alone, may lawfully
do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
| Name |
|
Position |
|
Date |
| |
|
|
|
|
| /s/ Steven M. Foster |
|
Chief Executive Officer and President, Director |
|
May 4, 2023 |
| Steven M. Foster |
|
(Principal Executive Officer) |
|
|
| |
|
|
|
|
| /s/ Richard Ginn |
|
Chief Technology Officer and Director |
|
May 4, 2023 |
| Richard Ginn |
|
|
|
|
| |
|
|
|
|
| /s/ Steven Van Dick |
|
Chief Financial Officer |
|
May 4, 2023 |
| Steven Van Dick |
|
(Principal Financial and Accounting Officer) |
|
|
| |
|
|
|
|
| /s/ Richard Ferrari |
|
Director and Chairman of the Board |
|
May 4, 2023 |
| Richard Ferrari |
|
|
|
|
| |
|
|
|
|
| /s/ Ivan Howard |
|
Director |
|
May 4, 2023 |
| Ivan Howard |
|
|
|
|
| |
|
|
|
| /s/ Frank Fischer |
Director |
|
May 4, 2023 |
| Frank Fischer |
|
|
|
| |
|
|
|
| /s/ Robert K. Weigle |
Director |
|
May 4, 2023 |
| Robert K. Weigle |
|
|
|
| |
|
|
|
| /s/ Stephen H. Hochschuler |
Director |
|
May 4, 2023 |
| Stephen H. Hochschuler, M.D |
|
|
|
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