TNON: reverse split authorized up to 1-for-35, debt financing shares cleared at annual meeting
A board-authorized reverse stock split in the 1-for-2 to 1-for-35 range is now in focus for Tenon Medical (TNON) after stockholders cleared the proposal at the company's July 23 virtual annual meeting. The same session…
A board-authorized reverse stock split in the 1-for-2 to 1-for-35 range is now in focus for Tenon Medical (TNON) after stockholders cleared the proposal at the company's July 23 virtual annual meeting. The same session approved share issuances tied to convertible promissory notes from the March 11, 2026 debt financing, a transaction that could push new stock above 19.99% of the shares outstanding at that time. The board holds sole discretion over the final ratio.
Reverse split: the vote and what passed
The proposal to amend Tenon Medical's Second Amended and Restated Certificate of Incorporation passed 4,583,877 to 1,723,195, with 164,400 abstentions. The common share count as of the June 8, 2026 record date stood at 11,849,674, alongside 204,159 shares of Series A Preferred Stock and 86,454 shares of Series B Preferred Stock. The board has not announced which ratio it will select or when the certificate amendment will be filed with Delaware.
Convertible notes and future issuances
Nasdaq Listing Rule 5635(d) requires stockholder approval before a company issues stock exceeding 19.99% of shares outstanding in certain transactions. Stockholders cleared the March 11 debt financing issuance 3,742,855 to 1,005,184, with 68,667 abstentions. They separately approved a forward-looking measure allowing sub-minimum-price issuances within Nasdaq parameters, that vote finishing 3,653,331 to 1,080,498. Both required a majority of shares represented at the meeting.
Board and auditor results
All seven director nominees were elected by plurality. Stephen Hochschuler, MD, drew the most favorable votes at 4,163,792, with Steven Foster at 4,105,114. Richard Ginn received the fewest, at 3,468,650, though every nominee cleared comfortably. Haskell & Whitee LLP was ratified as independent auditor for the fiscal year ending December 31, 2026, by 5,795,018 votes in favor and 149,616 against.
What to watch
The confirmable next step is the amended Delaware certificate reflecting the board's chosen split ratio. No timeline appeared in the July 24 8-K, signed by Chief Executive Officer and President Steven M. Foster.