Neuronetics priced the underwritten offering at $1.60 per share, selling about 18.8 million common shares. It also gave underwriters a 30-day option to buy up to an additional 2.8 million shares. The company expects gross proceeds of roughly $30 million and said it plans to use part of the funds to repay some of its term loan with Perceptive Credit Holdings IV.

Under an earlier amendment to its credit facility, certain revenue covenants would be reduced if specified conditions are met. Those include a prepayment of at least $15 million by Nov. 30. Neuronetics said meeting the conditions would allow the covenant reductions to resolve its going concern risk. The offering is expected to close on or about Nov. 12.