Rights issue 178% oversubscribed

Lighthouse | 8 April 2021

Share this note

  • Nexstim has successfully raised the targeted €6.6m (€6.4m net), at a price of €0.03 (or SEK0.31) per issue share. The raise was oversubscribed by an equivalent of 178.1% of the maximum planned. A total of 219.8m new shares will be issued, of which 209.1m were through subscription rights (95.2% uptake). The remaining 10.7m offer shares (4.8%) were allocated to holders of subscription rights; no offer shares were allocated to non-holders of pre-emptive rights.
  • The major shareholders, including Ossi Haapaniemi, Kyösti Kakkonen, Leena Niemistö (and their related businesses), plus company directors and other management, made subscription commitments for 105.1m new shares, representing 47.83% of the offer shares and amounting to c €3.2m.
  • The new shares are expected to be registered on April 12, with delivery and combination on April 13 for the shares traded on Euroclear Finland and trading on First North Finland on the same day. The shares on Euroclear Sweden will be combined April 16 and traded on First North Sweden on 14 April. The total number of shares in issue will rise from 439.6m to 659.4m.
  • Following the rights issue, the prices of the stock option programmes (2016B-C, 2018A-B, and 2020A-C) and outstanding warrant agreements with Kreos Capital have been reduced to maintain equivalence.
  • A key use of funds will be exploring the NBT (Navigated Brain Therapy) platform in the treatment of major depression with an accelerated iTBS treatment protocol. Promising initial results recently announced from the pilot study at Kuopio University Hospital support the expansion into a broader trial programme (March 2021 Lighthouse). The funds will also be employed in growing the sales of both NBT and NBS (Navigated Brain Stimulation) systems, repayment of existing loans, and funding general R&D and trials in neuropathic pain.

Trinity Delta view: The oversubscribed rights issue is tangible evidence of support for management’s growth strategy. Demonstrating the value of NBT in accelerated iTBS protocols for severe depression is a key component of the 2020-24 strategic plan. The new funds will also support other plans for NBT and NBS growth and enable achievement of several near and mid-term goals. Updating our Nexstim rNPV model for the raise results in a valuation of €50.6m (€0.08 per share) against our prior €44.2m (€0.10 per share), with the accelerated iTBS protocol opportunity in depression potentially adding a further €8.8m (now €0.01 per share vs €0.02 per share) previously.


8 April 2021

Market Cap€28.6m
Primary exchangeHelsinki
Corporate clientYes

Company description

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 its commercial roll out in the US, Europe and Asia.


Lala Gregorek
+44 (0) 20 3637 5043

Franc Gregori
+44 (0) 20 3637 5041


Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publicly available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2021 Trinity Delta Research Limited. All rights reserved.