€2.3m rights issue is 273% subscribed
Update | 2 June 2020
Nexstim’s €2.3m rights issue was materially oversubscribed, with bids for 273% of the offered shares. A total of 376.7m new shares, at €0.006, will be issued. The new funds provide the resources to continue to support its existing NBS and NBT businesses, and, importantly, invest in studies to explore attractive opportunities in severe depression and chronic neuropathic pain. Nexstim is carving out a promising, and sizeable, niche in depression; where the accuracy, reliability, and reproducibility of its navigated transcranial magnetic stimulation (TMS) technology is clearly differentiated versus the competition. Our updated Nexstim valuation, reflecting the fund raise and share dilution, is €32.2m (€0.07/share).
|Year-end: December 31||2018||2019||2020E||2021E|
|Adj. PBT (€m)||(6.2)||(6.8)||(4.8)||(5.2)|
|Net Income (€m)||(6.2)||(6.8)||(4.7)||(5.2)|
2 June 2020
|Shares in issue||62.8m|
|12 month range||€0.02-0.22|
Nexstim is a targeted neuro-modulation company that has developed a proprietary navigated rTMS platform for use in diagnostics (NBS) and therapeutics (NBT). NBS is used in planning brain surgery while NBT is focused on depression and chronic pain. FDA approval for depression was given in 2017, and the focus is on commercial roll out in the US, Europe, and Asia.
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