TELA Bio Enters Underwriting Agreement for Public Offering

TELA Bio, Inc. (NASDAQ: TELA) disclosed on October 23, 2024, that it entered into an underwriting agreement with Canaccord Genuity LLC, serving as the representative of the underwriters involved, for a public offering. The offering pertains to the issuance and sale of an aggregate of 12,000,000 shares of the company’s common stock, valued at $2.25 per share, and pre-funded warrants for up to 5,800,000 shares of common stock at $2.2499 per warrant.

This agreement includes a provision granting the underwriters a 30-day option to purchase up to an additional 2,670,000 shares of common stock. The closing of this offering, expected on October 24, 2024, is subject to meeting customary closing conditions. TELA Bio is set to receive an estimated $37.3 million in net proceeds from the offering after deducting underwriting discounts, commissions, and offering expenses.

The company intends to utilize the proceeds for various general corporate purposes, encompassing sales and marketing, research and development activities, general administrative matters, working capital, and capital expenditures. The pre-funded warrants issued are exerciseable immediately at an exercise price of $0.0001 per share.

The offering is being made under a prospectus supplement dated October 23, 2024, filed with the Securities and Exchange Commission (SEC), along with an accompanying base prospectus forming part of the Company’s Registration Statement on Form S-3 (File No. 333-275511).

The underwriting agreement contains standard representations, warranties, and covenants on the part of TELA Bio. Legal opinions regarding the issuance and sale of the shares and warrants were provided by Goodwin Procter LLP.

It is important to note that this press release includes forward-looking statements, with inherent risks and uncertainties tied to market conditions and the company’s ability to finalize the offering as envisaged. TELA Bio has agreed to provide updates if any new information, events, or circumstances arise subsequent to this report.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read TELA Bio’s 8K filing here.

TELA Bio Company Profile

TELA Bio, Inc, a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs.