Neuronetics Prices Offering of 18.75 Million Shares at $1.60 Each
Key Facts
Neuronetics priced an underwritten public offering on November 10, 2026, of 18,750,000 common shares at $1.60 per share, expecting gross proceeds of about $30 million before underwriting commissions and discounts and offering expenses, according to a company statement published via GlobeNewswire. The price means the company will issue and sell new shares, with the proceeds going to the company, the statement said. The company granted the underwriters a 30-day option to buy up to 2,812,500 additional shares at the offering price, less underwriting commissions. That option is separate from the base shares the company is selling in the offering. In after-hours trading on Tuesday, the stock fell 10%, according to Investing.com, following the offering announcement and the amendment to the credit agreement.
Neuronetics said part of the net proceeds would be used to repay a portion of its Perceptive loan, with the remainder directed to general corporate purposes, including sales and marketing, research and development, and working capital. This comes in the context of a sixth amendment to the loan agreement that the company signed on November 5, 2026. The amendment provides for a prepayment of at least $15 million, plus accrued interest, prepayment fees, amendment fees and lender expenses. The company said the conditions must be satisfied or waived by November 30, 2026, or the amendment will automatically terminate. It said reducing certain revenue covenants under the amendment would address going-concern risks if the conditions precedent to its effectiveness are met.
Outstanding borrowings under the Perceptive facility stood at $65 million on September 30, 2026, with a final maturity in July 2029, according to a Neuronetics filing with the U.S. Securities and Exchange Commission. The company said in the filing that it was in compliance with the facility’s covenants on that date. Debt repayment was part of a broader financing plan: the company sold 6,247,772 shares through its at-the-market equity offering program during the nine months ended September 30, 2026. The average sale price was $1.37 per share, and those sales generated gross proceeds of $8.6 million. The underwritten offering adds a new source of capital, while the loan amendment is tied to a specified prepayment requirement and a near-term deadline.
The transaction follows quarterly results showing the company’s revenue rose to $42.0 million in the third quarter of 2026, up 12.5% from $37.3 million in the same period of 2025, according to results published on November 4. Neuronetics attributed a major part of the revenue growth to an increase in Greenbrook revenue to $26.2 million from $21.8 million a year earlier. Net loss attributable to the company’s shareholders also narrowed to $1.7 million, or $0.02 per share, compared with a loss of $9.0 million, or $0.13 per share, in the third quarter of 2025. Gross margin rose to 52.2% from 45.9% in the comparable period. The company said the margin improvement was associated with its new go-to-market strategy and improved revenue cycle management at Greenbrook clinics.
STIM shares closed at $2.01 on November 10, 2026, according to EL7 data, while Investing.com reported a 10% decline in after-hours trading that day. Neuronetics expected to complete the offering on or about November 12, 2026, subject to customary closing conditions. This is ahead of the November 30 deadline to satisfy or obtain a waiver of the conditions in the Perceptive loan amendment. Execution of the prepayment and reduction of the revenue covenants depend on satisfying the amendment’s conditions, according to the company’s disclosure. The transaction thus combines the issuance of new shares to provide proceeds to the company with repayment of part of its debt, while the offering’s completion and the loan conditions remain upcoming milestones on the announced timeline.