Neuronetics Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Neuronetics, Inc. (NASDAQ: STIM) announced the granting of inducement awards to eight new employees, in accordance with NASDAQ Listing Rule 5635(c)(4). The awards consist of 152,939 Restricted Stock Units (RSUs), valued at the closing trading price on Nasdaq, vesting in three equal installments over three years. This move aims to enhance employee retention and incentivize new hires. Neuronetics is focused on improving mental health through innovative treatments, highlighted by its FDA-cleared NeuroStar Advanced Therapy system, which has delivered over four million treatments for depression.

Positive

• Granting of 152,939 RSUs to new employees, which may enhance retention and attract talent.
• Neuronetics' commitment to mental health innovation with its FDA-cleared NeuroStar Advanced Therapy system.

Negative

• Dependence on the performance of the NeuroStar system for revenue generation, presenting a risk to financial stability.
• Potential impact of COVID-19 on operational plans and patient access to products, which could affect sales.

MALVERN, Pa., May 06, 2022 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a commercial stage medical technology company focused on designing, developing, and marketing products that improve the quality of life for patients who suffer from neurohealth disorders, today announced the granting of inducement awards to eight new non-executive employees. In accordance with NASDAQ Listing Rule 5635(c)(4), the awards were approved by Neuronetics’ Compensation Committee and made as a material inducement to each employee's entry into employment with the Company.

In connection with the commencement of their employment, the Company granted 152,939 Restricted Stock Units (“RSUs”) with a fair value estimated at the date of grant based on the grant date fair value of the Company’s common stock equal to the closing trading price on the Nasdaq Global Select Market. The RSUs vest ratably in three equal installments on the first, second and third anniversaries of the grant date, subject to the employee's continued service with the Company through the applicable vesting date. The RSUs are subject to the terms of the Neuronetics 2020 Inducement Plan.

About Neuronetics
Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience and the largest TMS company in the industry, Neuronetics is redefining patient and physician expectations by designing and developing products that improve the quality of life for people suffering from psychiatric disorders. An FDA-cleared, non-drug, noninvasive treatment for people with depression, Neuronetics’ NeuroStar® Advanced Therapy system is today’s leading transcranial magnetic stimulation (TMS) treatment for major depressive disorder with over four million treatments delivered. NeuroStar is widely researched and backed by the largest clinical data set of any TMS system for depression, including the world’s largest depression Outcomes Registry. Neuronetics is committed to transforming lives by offering an exceptional treatment option that produces extraordinary results. For safety information and indications for use, visit NeuroStar.com.

“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
Statements in the press release regarding Neuronetics, Inc. (the “Company”) that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as “outlook,” “potential,” “believe,” “expect,” “plan,” “anticipate,” “predict,” “may,” “will,” “could,” “would” and “should” as well as the negative of these terms and similar expressions. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, risks and uncertainties related to: the impact of COVID-19 on the Company’s operational and budget plans as well as general political and economic conditions, including as a result of efforts by governmental authorities to mitigate COVID-19, such as travel bans, shelter in place orders and third-party business closures and the related impact on resource allocations, manufacturing and supply chains and patient access to commercial products; the Company’s ability to execute its business continuity; the Company’s ability to achieve or sustain profitable operations due to its history of losses; the Company’s reliance on the sale and usage of its NeuroStar Advanced Therapy for Mental Health System to generate revenues; the scale and efficacy of the Company’s salesforce as well as the Company’s ability to retain talent; availability of coverage and reimbursement from third-party payors for treatments using the Company’s products; physician and patient demand for treatments using the Company’s products; developments in respect of competing technologies and therapies for the indications that the Company’s products treat; product defects; the Company’s ability to obtain and maintain intellectual property protection for its technology; developments in clinical trials or regulatory review of NeuroStar Advanced Therapy for Mental Health System for additional indications; and developments in regulation in the United States and other applicable jurisdictions. For a discussion of these and other related risks, please refer to the Company’s recent SEC filings which are available on the SEC’s website at www.sec.gov. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this press release. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, or changes in the Company’s expectations.

Investor Contact:
Mike Vallie or Mark Klausner
ICR Westwicke
443-213-0499
ir@neuronetics.com

Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com

FAQ

What awards did Neuronetics grant on May 6, 2022?

Neuronetics granted 152,939 Restricted Stock Units (RSUs) to eight new non-executive employees.

What is the significance of the RSUs granted by Neuronetics?

The RSUs serve as an inducement for new employees and vest over three years, aligning their interests with company performance.

How does Neuronetics' NeuroStar system impact its business?

The NeuroStar system is vital for revenue generation, with over four million treatments delivered, yet its performance is crucial for financial success.

What risks does Neuronetics face regarding COVID-19?

Neuronetics faces operational and financial risks due to potential impacts of COVID-19 on patient access and supply chains.

What does NASDAQ Listing Rule 5635(c)(4) involve?

This rule pertains to granting inducement awards to new employees as a condition of their employment.