Terms of the rights issue announced

Lighthouse | 28 March 2019

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  • Nexstim aims to raise c €5.2m through a pre-emptive rights issue and could raise a further €2.6m from attached warrants.
  • Shareholders have the right to subscribe for 14 shares for each share currently held; the subscription price of the new shares is €0.115.
  • In addition, one offer warrant will be issued free of charge for every two new shares purchased.
  • Each warrant will enable the holder to subscribe to an additional share between 22 October and 4 November at a 25% discount to prevailing price or €0.115, whichever is greater
  • The subscription period begins on 2 April and ends on 26 April in Finland and on 24 April in Sweden.
  • 6% of the rights issue is underwritten, meaning that Nexstim will raise funds of at least €1.1m.
  • If the rights issue is taken up in full, the company expects to raise €4.8m after costs.
  • Proceeds will be used to develop Nexstim’s sales and marketing capabilities (especially in the US), finance the purchase of NBT systems, repay existing loans (€1m is repayable to Kreos in 2019), finance R&D and working capital needs, as well as for general corporate purposes.

Trinity Delta view: The value of Nexstim’s proprietary NBT platform is increasingly becoming visible. Whilst the first commercial delivery in the US for the depression indication is a useful milestone, the real value of the platform lies in the stroke rehabilitation indication. The major inflection point is rapidly approaching, with the results of the important E-FIT trial expected within circa three weeks. Assuming a positive outcome, the next stage will be to raise sufficient cash to implement a comprehensive commercialisation strategy and to progress the proposed clinical trial programme.

It should be remembered that Nexstim has significant opportunities ahead, if it is able to overcome its financial difficulties. In particular, transcranial magnetic stimulation is increasingly being recognised as a therapy for c 6m MDD patients, and NBT is the only system that can deliver accurate and reproducible treatment. Nexstim has also recently had a rapid treatment protocol approved by the FDA, reducing treatment time to 3 minutes vs 37 minutes currently, which should make the NBT system more competitive.

Prior to the announcement of the rights issue we valued Nexstim at €10.5m or €3.23/share; we will be reviewing our valuation once the results of the capital raise are reported.


28 March 2019

Market Cap€1.6m
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.


Mick Cooper PhD
+44 (0) 20 3637 5042

Lala Gregorek
+44 (0) 20 3637 5043


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