Nexstim announces agreement on growth financing

Translation: Original comment published in Finnish on 8/11/2023 at 6:30 am EEST.

Nexstim announced on Thursday that it has agreed a EUR 1.5 million loan with Nordea. According to the press release, the loan will finance strategic investments, growth and working capital needs. The term of the loan is five years and the loan is expected to be drawn down during August. We estimate that the loan could be linked to Nexstim's clinic network investments, but in the absence of further information, we are waiting for more details for now.

Nexstim has been preparing for a long time to expand its network of clinics

In January 2022, Nexstim announced a strategic investment in a Californian clinic services company. PNC Management Services, LLC provides management, consulting, administrative and other support services to the local TMS clinic. In March 2022, the company announced the establishment of an investment company, which we understand will be tasked with making investments in similar types of clinic service companies. We estimate that the investments may also involve equipment sales. Expansion of the clinic network has been a strategic focus area for Nexstim since last year, but no new investments have been heard of since PNC Management Services. We estimate that the funding now agreed could be linked to the expansion of the clinic network, either in Europe or the US. At this stage, however, no further details on the use of the funding are available, so we await further information on the subject.