Neuronetics Stock Declines on Underwritten Public Offering Aimed at Resolving Going Concern Risk

Dow Jones
昨天
 

Shares of Neuronetics declined after the company announced an underwritten public offering it expects to help it pay down some of its debt and resolve its going concern risk.

The stock fell 14% to $1.73 in premarket trading Wednesday. At Tuesday's market close shares were up 46% year to date.

Neuronetics said it expects roughly $30 million in gross proceeds from the offering, a portion of which it plans to use to repay a portion of its outstanding term loan under its credit agreement and guaranty with Perceptive Credit Holdings IV.

The company had previously entered an amendment to the facility that would reduce certain revenue covenants, subject to certain conditions including a prepayment of at least $15 million on or before Nov. 30.

The company expects that if it can satisfy those conditions, the reduction of those revenue covenants would resolve its going concern risk.

Neuronetics priced the offering of about 18.8 million shares of its common stock at $1.60 a share, and also granted underwriters a 30-day option to purchase up to an additional 2.8 million shares.

The offering is expected to close on or about Nov. 12.

 
 

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