SCHEDULE 13G/A: Nantahala Capital Management Discloses 12.9% Stake in TELA Bio, Inc.

Nantahala Capital Management, along with its managers Wilmot B. Harkey and Daniel Mack, has disclosed a beneficial ownership of 12.9% in TELA Bio, Inc., holding over 5.1 million shares.

Summary

• Nantahala Capital Management, LLC, Wilmot B. Harkey, and Daniel Mack (collectively, the "Reporting Persons") have filed an Amendment No. 2 to Schedule 13G regarding their ownership in TELA Bio, Inc.
• As of April 30, 2025, the Reporting Persons beneficially own an aggregate of 5,111,588 shares of TELA Bio, Inc. Common Stock.
• This ownership represents 12.9% of the total outstanding shares of TELA Bio, Inc., based on 39,551,098 shares outstanding as reported by the issuer in its 10-K filed on March 21, 2025.
• The Reporting Persons share both voting power and dispositive power over all 5,111,588 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of TELA Bio, Inc.
• BLACKWELL PARTNERS LLC SERIES A, a fund advised by Nantahala, holds more than five percent of the outstanding shares beneficially owned by Nantahala.

Sentiment

Score: 7

Explanation: The disclosure of a significant 12.9% stake by a reputable investment firm like Nantahala Capital Management is generally viewed positively by the market, indicating investor confidence, especially since it's stated to be for ordinary course of business and not for control.

Positives

• A significant stake (12.9%) held by an institutional investor like Nantahala Capital Management can be viewed as a vote of confidence in TELA Bio, Inc.'s long-term prospects.
• The filing indicates a passive investment, suggesting the investor is not seeking to influence or change control, which can provide stability.

Risks

• The document does not detail specific risks related to TELA Bio, Inc.'s operations or financial performance, as it is an ownership disclosure filing.

Future Outlook

This document, a Schedule 13G, is an ownership disclosure and does not contain forward-looking statements or guidance from TELA Bio, Inc. or the reporting persons regarding the issuer's future performance.

Industry Context

This filing is a disclosure of a significant ownership stake by an investment firm in a publicly traded company. It does not provide broader industry trends or competitive analysis for TELA Bio, Inc.'s sector.

Related Party Transactions

• BLACKWELL PARTNERS LLC SERIES A, a fund advised by Nantahala Capital Management, LLC, has the right to receive or direct dividends and proceeds from the sale of more than five percent of the outstanding shares of common stock beneficially owned by Nantahala.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may influence investor sentiment and potentially the stock price, signaling confidence from a major investor.
• Company Management: Awareness of a large, passive institutional holder may influence strategic considerations, though the filing explicitly states no intent to influence control.

Key Dates

Keywords

TELA Bio Inc., Nantahala Capital Management, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, Ownership Disclosure, Wilmot B. Harkey, Daniel Mack, SEC Filing