01:51 PM EDT, 08/12/2024 (MT Newswires) -- Neuronetics ( STIM ) shares fell 57% in recent Monday trading after the company announced a merger agreement and reported Q2 results that fell below expectations.

Neuronetics ( STIM ) said it was merging with Greenbrook TMS in an all-stock transaction. Each Greenbrook share will be exchanged for 0.01149 Neuronetics ( STIM ) share.

Following the merger, Greenbrook shareholders will own approximately 43% of the combined company while Neuronetics ( STIM ) investors will own the rest.

Greenbrook's existing debt, which is mostly held by Madryn Asset Management and its affiliates, will convert into common shares of the company prior to the merger, Neuronetics ( STIM ) said. The merger is expected to close in Q4.

Meanwhile, Neuronetics ( STIM ) reported a Q2 loss of $0.33 per share, widening from a loss of $0.17 a year earlier. Analysts polled by Capital IQ expected a loss of $0.27.

Revenue for the quarter ended June 30 was $16.5 million, down from $17.6 million a year ago. Analysts surveyed by Capital IQ expected $18.7 million.

Neuronetics ( STIM ) said it expects Q3 revenue of $18.5 million to $19.5 million. Analysts polled by Capital IQ expect $20.1 million.

The company also reiterated its full-year revenue outlook of $78 million and $80 million. Analysts surveyed by Capital IQ expect $79.1 million.

Price: 0.76, Change: -1.02, Percent Change: -57.42