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

Rhea-AI Summary

Neuronetics, Inc. (NASDAQ: STIM) has granted inducement awards to 12 new non-executive employees, complying with NASDAQ Listing Rule 5635(c)(4). A total of 55,680 Restricted Stock Units (RSUs) were awarded, with vesting occurring in three equal installments over three years, contingent on continued service. The RSUs are part of the Neuronetics 2020 Inducement Plan. As a leader in neuroscience and TMS treatment, Neuronetics aims to enhance life quality for those with neurohealth disorders, including major depressive disorder.

Positive

• Granting of 55,680 RSUs as an inducement for new hires could enhance talent acquisition.
• Compliance with NASDAQ Listing Rule reinforces corporate governance.

Negative

• Potential risks related to reliance on NeuroStar for revenue.
• History of operational losses could impact financial stability.

MALVERN, Pa., Aug. 05, 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 twelve 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 55,680 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 4.8 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. Our NeuroStar^® Advanced Therapy system is also FDA-cleared to treat people suffering from obsessive-compulsive disorder, as well as for the treatment of comorbid anxiety symptoms (“anxious depression”) for adults with MDD suffering from anxiety symptoms. 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 are the details of the RSUs granted by Neuronetics on August 5, 2022?

Neuronetics granted a total of 55,680 Restricted Stock Units to 12 new employees, which will vest in three equal installments over three years.

How does the RSU grant impact Neuronetics' stock performance?

The RSU grant reflects the company's efforts to attract talent but may also indicate reliance on employee stock incentives to bolster workforce stability.

What compliance measures did Neuronetics follow in the RSU grant?

The RSU awards were granted in accordance with NASDAQ Listing Rule 5635(c)(4), ensuring proper governance in employee compensation.

What challenges does Neuronetics face according to the August 2022 press release?

Neuronetics faces risks from its history of losses and reliance on NeuroStar for revenue generation, impacting its operational stability.