Nexstim has agreed on a digitalization and innovation loan with Finnvera
Translation: Original comment published in Finnish on 06/28/2024 at 8:46 am EEST
Nexstim announced on Thursday that it had agreed on a digitalization and innovation loan with Finnvera. The loan of 1.5 MEUR is intended for the product development of the NBS6 system. We will include the loan in our model in connection with the next company update or in the H1 preview at the latest.
The loan finances the development of the NBS6 system
Debt financing has taken on a larger role as a financing tool for Nexstim. Last fall, the company announced a bank loan of 1.5 MEUR, last week a convertible bond of EUR 650,000 and now a 1.5 MEUR R&D loan. The main reason for the convertible bond was to arrange the self-financing share for the now-announced R&D loan. The purpose of Finnvera’s 6-year loan isto finance the product development work of the NBS6 system. Nexstim’s total R&D expenses in 2023 amounted to 2.3 MEUR, so the loan is significant relative to the company’s R&D investments. The loan strengthens Nexstim’s short-term liquidity as the company aims to enter into a contract with Sinaptica for Alzheimer’s disease treatment that will generate cash flow in the short term. Any decisions related to Magnus Medical’s licensing agreement may also have a significant impact on the company’s financial situation.
Uncertainty is higher than normal in the near future
Nexstim has recently received significant positive news (letter of intent related to Alzheimer’s treatment) and negative news (uncertainty about royalty payments) considering the size of the company The news has increased the uncertainty related to the stock, as the letter of intent and the licensing agreement being resolved one way another can significantly impact Nexstim's cash flows and share value. Nexstim publishes its H1 results on August 16, when more information on the company’s contractual situation and financial position will likley be available.
Nexstim
Nexstim operates in medical technology. The company has developed a non-invasive brain stimulation technology called SmartFocus®. It is a navigated transcranial magnetic stimulation (nTMS) technology with 3D navigation providing targeting of the TMS to the specific area of the brain. The technology is aimed for the treatment of major depression and chronic neuropathic pain. The company was founded in 2000 and has its headquarters in Helsinki.
Read more on company pageKey Estimate Figures12/06
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 7.2 | 9.3 | 11.7 |
growth-% | -23.93 % | 28.65 % | 25.99 % |
EBIT (adj.) | -1.2 | -0.0 | 1.0 |
EBIT-% (adj.) | -16.94 % | -0.04 % | 8.66 % |
EPS (adj.) | -0.18 | -0.01 | 0.13 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | - | - | 23.07 |
EV/EBITDA | - | 27.54 | 12.89 |