By Elias Schisgall
Pointillist Family Office called on the board of Neuronetics to explore strategic alternatives for the medical technology and healthcare company, including a sale of its transcranial magnetic stimulation business.
In a letter to the board Monday, the managing member of Pointillist, Jorey Chernett, said he still believes in the company's two business units, but that combining them has not led to the benefits that were expected. Chernett, who said Pointillist is Neuronetics largest shareholder with a 14% stake, is chief executive officer of the health technology company Clearpath.
Neuronetics "has chronically underperformed," Chernett said. "The root cause, in our view, is structural: a micro-cap company with finite capital and limited management bandwidth cannot adequately serve two distinct businesses simultaneously."
The company should sell its TMS business to unlock value for shareholders, Chernett said. A sale would also allow the company to focus on its Greenbrook clinic business, which is poised to capitalize on emerging mental health treatments.
Selling the TMS unit would unlock options including paying a special dividend of around $1.50 to $1.75 a share, retiring the company's outstanding debt, and adding more than $100 million in pro forma cash to the balance sheet, he said. It would also provide capital and operational flexibility, Chernett said.
A Neuronetics representative did not immediately respond to a request for comment.
Shares of Neuronetics rose 6.3% to $1.87 in after-hours trading.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
April 06, 2026 17:00 ET (21:00 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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