Tenon Medical Stock Rockets Nearly 4x, Leads Retail Follower Surge In Healthcare: What's Driving The Hype?
The medical device company said that the FDA had cleared its Catamaran SI Joint Fusion System for expanded use in augmenting thoracolumbar fusion.
FollowShares of Tenon Medical, Inc. surged more than 280% on Tuesday, marking their best day ever, with the nano-cap medical device firm's retail following on Stocktwits surging the most among healthcare stocks after a key regulatory approval.
During after-hours trading on Monday, Tenon said that the U.S. Food and Drug Administration had cleared its Catamaran SI Joint Fusion System for expanded use in augmenting thoracolumbar fusion.
"With this approval, the Catamaran is now indicated to treat the SI [sacroiliac] joint as either a stand-alone treatment or to augment a spinal fusion," the company said in a statement.
Tenon's Catamaran system is designed as a minimally invasive solution for stabilizing the joint where the lower spine and pelvic bone meet. It uses a single titanium implant to secure the joint by passing through key bone structures.
On Stocktwits, Tenon gained 25% more followers from a day ago, as sentiment turned even more 'extremely bullish' while message volume soared by 813%.
One user said if the stock breaks the $5 level again, it "will go to $7+ fast. Shorts will have to cover."
However, Tenon shares fell more than 5% in Tuesday's extended trading after the company announced a $1.5 million registered direct offering to a healthcare-focused institutional investor.
Under the agreement, Tenon will issue 733,500 shares at $2 each and an equal number of warrants exercisable at the same price.
The company expects to close the offering on Wednesday, and the proceeds will be used for working capital and general corporate purposes.
However, several optimistic retail watchers were still not rankled. One user said, "Everyone's panicking over the offering, but it was a direct offering so it got them secured cash to move forward without diluting the base rapidly."
Tenon's stock has gained a whopping 93% so far this year. The sole analyst covering it on Wall Street rates it a 'strong buy,' according to Koyfin.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.
