Largest Independent Shareholder of Neuronetics, Inc., Jorey Chernett, Calls for Immediate and Comprehensive Review of Strategic Alternatives, Including Sale of TMS Business

Neuronetics (NASDAQ: STIM) largest independent shareholder, Jorey Chernett, delivered a letter on April 6, 2026 calling for an immediate, comprehensive review of strategic alternatives, including a potential sale of the Company's TMS business.

Rhea-AI Summary

Neuronetics (NASDAQ: STIM) largest independent shareholder, Jorey Chernett, delivered a letter on April 6, 2026 calling for an immediate, comprehensive review of strategic alternatives, including a potential sale of the Company's TMS business.

The letter cites a 14.12% ownership stake, argues that post-acquisition synergies have not materialized since December 2024, and claims applying comparable multiples implies 5–7x upside to current STIM equity value. Chernett urges the Board to engage advisors to evaluate all options and consider separating the clinic business as a standalone.

Positive

• 14.12% stake held by largest independent shareholder
• Calls for comprehensive strategic review including sale option
• Claims potential 5–7x implied equity value

Negative

• Post-acquisition synergies have not materialized since December 2024
• Peers have materially outperformed STIM after the acquisition
• Company operates two structurally distinct businesses with finite resources

Argus Apr 7 session

-10.23% close to close Open Argus

Details

News Market Reaction – STIM

On Apr 7, the first trading day after this news, STIM closed 10.23% below the previous close.

Data tracked by StockTitan Argus for the Apr 7 session.

Key Figures

Shareholder stake: 14.12% of outstanding shares Implied upside: 5–7x current price Acquisition timing: December 2024 +2 more

Shareholder stake

14.12% of outstanding shares

Ownership reported by Jorey Chernett in the article

Implied upside

5–7x current price

Upside potential cited in shareholder letter for STIM equity value

Acquisition timing

December 2024

Reference point for the Greenbrook acquisition under discussion

Peer performance

Pure-play peers outperformed

Peers noted as trading at substantially higher multiples post-acquisition

Business count

Two distinct businesses

TMS business and standalone clinic business identified as separate assets

Historical Context

5 past events · Latest: Mar 17

5 events

1. Mar 17

   Q4/FY25 earnings

   24h Move

   -9.9%

   Reported strong revenue growth but lower margins and a significant net loss.

2. Mar 17

   CEO appointment

   24h Move

   -9.9%

   Named new President and CEO with sizeable RSU grant and device experience.

3. Mar 03

   Earnings date set

   24h Move

   -1.6%

   Announced timing and access details for upcoming Q4 2025 earnings release.

4. Feb 10

   Prelim results

   24h Move

   +23.3%

   Prelim Q4/FY25 results showed strong revenue growth and positive operating cash flow.

5. Nov 20

   Conference appearance

   24h Move

   -12.8%

   Planned participation in a major healthcare conference fireside chat.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

strategic alternatives, tms, tam, micro-cap

4 terms

strategic alternatives financial

"calling for the immediate initiation of a comprehensive review of strategic alternatives"

Strategic alternatives are different options a company considers to improve its value or achieve its goals, such as selling the business, merging with another company, or restructuring operations. For investors, understanding these options is important because they can significantly impact the company's future direction and its stock value, often signaling potential changes or opportunities.

tms medical

"including the potential sale of the Company's TMS business"

Transcranial magnetic stimulation is a noninvasive medical treatment that uses brief magnetic pulses to stimulate specific areas of the brain, similar to tapping a circuit to reset its activity. Investors watch TMS because approvals, clinical trial results, or wider insurance coverage can open large markets for devices and services, affecting revenue and growth prospects for companies developing or delivering the therapy.

tam financial

"two compelling, high-quality assets with large and expanding TAMs"

Total addressable market (TAM) is an estimate of the total revenue opportunity available for a product or service if it captured every possible customer. Think of it as the size of the whole pie a business could potentially eat from; investors use it to judge how large a company could grow, whether current sales are a small slice or a meaningful portion, and to compare growth opportunities across industries.

micro-cap financial

"A micro-cap enterprise with finite resources cannot effectively serve two structurally distinct businesses."

A micro-cap is a publicly traded company with a very small total market value, generally measured as market capitalization and often considered to be below roughly $300 million (thresholds can vary). For investors it matters because these stocks can offer outsized gains but also carry higher risk: they tend to have fewer buyers and sellers, wider price swings, and less public information—think of a tiny neighborhood shop that can grow fast or fail suddenly compared with a big supermarket.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Delivers Letter to STIM Board Outlining Potential 5-7x Upside for Shareholders Inherent in Sale of TMS and Standalone Clinic Business

BLOOMFIELD HILLS, Mich., April 6, 2026 /PRNewswire/ -- Jorey Chernett, the largest independent shareholder of Neuronetics, Inc. (NASDAQ: STIM) (the "Company" or "Neuronetics") owning approximately 14.12% of outstanding shares, today delivered a letter to the STIM Board of Directors (the "Board") calling for the immediate initiation of a comprehensive review of strategic alternatives, including the potential sale of the Company's TMS business.

The letter outlines the substantial value that could be delivered to shareholders if a sale of the TMS business were to be executed and the clinic business was to operate on a standalone basis. Specifically:

• STIM has two compelling, high-quality assets with large and expanding TAMs, market-leading positions, accelerating adoption, and meaningful industry tailwinds.
• Despite these attractive businesses, the anticipated synergies of combining TMS and Greenbrook have not materialized, and the premise of 1 + 1 > 3 has proven illusory.
• Since the December 2024 acquisition, pure-play peers have dramatically outperformed STIM and now trade at substantially higher multiples.
• A micro-cap enterprise with finite resources cannot effectively serve two structurally distinct businesses.
• Applying conservative, yet comparable multiples to STIM's constituent businesses implies equity value to shareholders of 5–7x the current price of STIM's stock.
• Further upside could be present with effective oversight and full dedication of resources to the industry leading clinic business. 
• The Board must act in the best interest of STIM shareholders and immediately engage qualified advisors to evaluate all strategic alternatives.

The full text of the letter can be found here:

Media Contact:
ASC Advisors
Taylor Ingraham / Max Rayden
tingraham@ascadvisors.com / mrayden@ascadvisors.com
203 992 1230

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SOURCE Jorey Chernett

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Jorey Chernett request from the Neuronetics (STIM) board on April 6, 2026?

He requested an immediate, comprehensive review of strategic alternatives, including sale of the TMS business. According to Jorey Chernett, the Board should engage qualified advisors to evaluate all options and consider separating the clinic business as a standalone.

How much of Neuronetics (STIM) does Jorey Chernett own, according to the April 6, 2026 letter?

Chernett owns approximately 14.12% of outstanding Neuronetics shares. According to Jorey Chernett, that stake is cited to justify pressing the Board for an advisor-led strategic review and possible divestiture of the TMS business.

What valuation upside did the April 6, 2026 letter claim for Neuronetics (STIM)?

The letter claims applying comparable multiples implies equity value of about 5–7x the current STIM price. According to Jorey Chernett, that upside assumes a sale of the TMS business and standalone operation of the clinic business.

Why does the April 6, 2026 letter say Neuronetics (STIM) should consider selling the TMS business?

The letter argues synergies between TMS and Greenbrook have not materialized, and a micro-cap cannot serve two distinct businesses effectively. According to Jorey Chernett, separation could unlock shareholder value and improve operational focus.

What timeline or prior transactions does the April 6, 2026 letter reference for Neuronetics (STIM)?

The letter references the December 2024 acquisition as the point after which expected synergies failed to appear. According to Jorey Chernett, peers outperformed STIM following that acquisition, motivating the call for a strategic review.

What specific actions did Jorey Chernett ask the Neuronetics (STIM) board to take immediately?

He asked the Board to immediately engage qualified advisors to evaluate all strategic alternatives, including a sale of the TMS business. According to Jorey Chernett, prompt advisor engagement is needed to assess options and pursue shareholder value.