Subscription rights issue of €6.6m at €0.03 per share
Lighthouse | 8 March 2021
Trinity Delta view: This Nexstim fund raise was well-flagged, with the issuance of new shares authorised at the EGM on March 1st. New funds will be used mainly to explore Nexstim’s NBT (Navigated Brain Therapy) in accelerated iTBS protocols for severe depression, a development programme that is a key component of the 2020-24 strategic plan. Successful outcomes in future registrational studies with accelerated protocols would open a material, and commercially attractive, new hospital treatment segment for NBT.
Management had indicated in the FY20 results statement that c €3m was required to cover working capital needs, such as support for NBT and NBS growth, for the next 12 months; the additional funds from this raise should also enable achievement of several near and mid-term strategic goals. Once the fund raise closes, we will update our current Nexstim rNPV valuation of €44.2m (€0.10 per share) and conservative estimation that the accelerated iTBS protocol opportunity in depression could add €8.8m (€0.02/share).
8 March 2021
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.
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