Tenon Medical faces Nasdaq delisting over equity shortfall

Published 26/08/2024, 21:52
Tenon Medical faces Nasdaq delisting over equity shortfall

LOS GATOS, CA – Tenon Medical, Inc. received a notification from The Nasdaq Stock Market on Thursday, August 23, 2024, stating that the company no longer meets the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market. According to the notice, Tenon Medical reported stockholders’ equity of $832,000 in its latest quarterly report, falling short of the Nasdaq's minimum requirement of $2.5 million.

The company, which is listed under the ticker TNON and offers its warrants under TNONW, is now assessing options to regain compliance. Tenon Medical has until Monday, October 7, 2024, to submit a plan to Nasdaq outlining how it intends to address the deficiency. If the plan is accepted, Nasdaq may allow up to 180 days from the notice date for the company to meet the listing criteria.

If Tenon Medical fails to propose an acceptable plan or to regain compliance within a potential extension period, its securities may be delisted. The company could then request a hearing before a Nasdaq Hearings Panel, which could grant an additional 180 days to achieve compliance.

This development does not immediately impact the trading of Tenon Medical’s common stock on the Nasdaq, nor does it affect the company’s operations or SEC reporting requirements. Tenon Medical is a Delaware-incorporated company specializing in surgical and medical instruments and apparatus, with headquarters at 104 Cooper Court, Los Gatos, CA.

In other recent news, Tenon Medical, Inc. shareholders have given their approval on critical proposals during the company's 2024 Annual Stockholders Meeting. The virtual meeting led to the election of seven nominees, including Richard Ferrari (NYSE:RACE), Steven Foster, Richard Ginn, Stephen Hochschuler, MD, Ivan Howard, Kristine Jacques, and Robert Weigle, to the Board of Directors.

Shareholders also gave the green light to amendments to the company's equity plan and ratified Haskell & White LLP as the independent auditor for the fiscal year ending December 31, 2024.

The terms of the company's Series B Preferred Stock, related warrants, and an amendment to decrease the conversion price of the Series A Preferred Stock were approved to align with the Nasdaq Listing Rule 5635(d).

The modifications to the Tenon Medical, Inc. 2022 Equity Incentive Plan, including the addition of 1,100,000 shares of common stock subject to the plan and the potential to issue equity awards to individuals and legal entities, were also sanctioned.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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