Neuronetics Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)
Rhea-AI Summary
Neuronetics (NASDAQ: STIM) has announced the granting of inducement awards to a new employee, Bill Leonard, as approved by the Company's Board of Directors' Compensation Committee. The award consists of 50,000 Performance Restricted Stock Units (PRSUs) that will vest in equal installments on December 31, 2025, 2026, and 2027. The vesting is contingent upon certain employees maintaining their employment with either Neuronetics or Greenbrook TMS Inc. through December 31, 2025. These awards were granted under the Company's 2020 Inducement Incentive Plan and comply with NASDAQ Listing Rule 5635(c)(4).
Positive
- Award of 50,000 PRSUs indicates strategic employee retention efforts
- Three-year vesting schedule promotes long-term employee commitment
Negative
- Vesting conditions tied to retention of specific employees creates execution risk
- Potential future dilution from 50,000 new shares
News Market Reaction 1 Alert
On the day this news was published, STIM declined 5.84%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MALVERN, Pa., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM) (the “Company”) today announced the granting of inducement awards to a new employee as described below. In accordance with NASDAQ Listing Rule 5635(c)(4), these awards were approved by the Compensation Committee of the Company’s Board of Directors and were made as material inducements to the recipients’ employment with the Company. In all cases, vesting is subject to the recipient’s continued service with the Company through the applicable vesting date, and the awards are subject to the terms of the Company’s 2020 Inducement Incentive Plan.
Performance restricted stock units (“PRSUs”)
| Name | Number of PRSUs | Vesting Date |
| Bill Leonard | 50,000 | (see below) |
The PRSUs will vest in substantially equal installments on December 31, 2025, December 31, 2026, and December 31, 2027, but only if certain employees do not terminate their employment with the Company or Greenbrook TMS Inc., as applicable, on or before December 31, 2025.
About Neuronetics and Greenbrook
Neuronetics, Inc. (“Neuronetics”) believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is redefining patient and physician expectations by offering exceptional treatments that produce extraordinary results. Neuronetics’ NeuroStar Advanced Therapy for Mental Health is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication has not helped. In addition to selling the NeuroStar system and associated treatment sessions to customers, Greenbrook TMS Inc. (“Greenbrook”) operates treatment centers across the United States, offering both NeuroStar Advanced Therapy (transcranial magnetic stimulation or “TMS”) and Spravato® (esketamine nasal spray) for the treatment of major depressive disorder (“MDD”) and other mental health disorders. NeuroStar Advanced Therapy is the leading TMS treatment for MDD in adults with more than 6.9 million treatments delivered and is backed by the largest clinical data set of any TMS treatment system for depression, including the world’s largest depression outcomes registry. Spravato® is offered to treat adults with treatment-resistant depression and depressive symptoms in adults with MDD with suicidal thoughts or actions. Greenbrook has provided more than 1.68 million treatments to over 51,000 patients struggling with depression.
Investor Contact:
Mike Vallie or Mark Klausner
ICR Healthcare
443-213-0499
ir@neuronetics.com
Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com
FAQ
How many PRSUs did Neuronetics (STIM) grant to Bill Leonard in December 2023?
What are the vesting dates for Neuronetics' (STIM) newly granted PRSUs?
What are the conditions for STIM's PRSU vesting announced in December 2023?
Under which plan were Neuronetics' (STIM) inducement awards granted?
