Shares of Neuronetics Inc (NASDAQ:STIM) dropped roughly 10% in after-hours trading on Tuesday after the company announced two significant financing moves: an underwritten public offering of common stock and an amendment to its existing credit agreement.
Neuronetics said it commenced the offering with all offered shares to be sold by the company. The firm also plans to grant underwriters a 30-day option to acquire up to an additional 15% of the shares being offered at the public offering price, less the underwriting discount.
Separately, Neuronetics disclosed it executed Amendment No. 6 to its Credit Agreement with Perceptive Credit Holdings IV, LP on November 5, 2026. The amendment would reduce certain revenue covenants, but that reduction is contingent on a set of conditions, including a prepayment of at least $15 million, plus accrued interest, early prepayment fees, amendment fees, and other associated costs.
The company noted that the amendment will automatically terminate if the conditions are not satisfied or waived by November 30, 2026. Neuronetics said that if the required conditions are met, the lowered revenue covenants will resolve the going concern risk referenced in its recent Form 10-Q filings.
The credit agreement named in the disclosure was originally entered into on July 25, 2024, with Perceptive serving as administrative agent and lender.
In terms of underwriting, William Blair is acting as the lead bookrunning manager for the stock offering, while BTIG and Canaccord Genuity are named as additional bookrunners. The shares are being offered under a shelf registration statement that the SEC declared effective on July 18, 2025.
Neuronetics is known for its NeuroStar transcranial magnetic stimulation - TMS - technology and operates the Greenbrook network of interventional psychiatry clinics. Its NeuroStar Advanced Therapy system is cleared by the FDA for treatment of major depressive disorder in adults and adolescents, as well as for obsessive-compulsive disorder and anxiety symptoms.
What this means for markets and the company
The equity offering and the conditional credit amendment represent near-term financing steps for Neuronetics. Market reaction was immediate in after-hours trading, where the stock declined about 10% following the announcements.
Details in the credit amendment tie relief from certain covenant pressures to a substantial prepayment and associated fees and costs, and the company has stated that satisfying those conditions would address the going concern matters it flagged in recent regulatory filings.