Wyoming Hedge Fund Acquires 13 Percent Stake in Malvern-Based Medical Device Company

Image via Neuronetics.

Activist investor J. Carlo Cannell, the director of Cannell Capital, has acquired close to a 13 percent stake in Malvern-based Neuronetics and is now seeking a seat on the company’s board of directors, writes John George for the Philadelphia Business Journal. 

Cannell Capital, a Wyoming-based hedge fund, has close to $900 million in discretionary assets under management.  

According to documents Neuronetics filed with the U.S. Securities and Exchange Commission, the investor has acquired a little over 3.46 million shares of the medical device developer’s stock at the aggregate amount of $29.1 million. These shares represent a 12.94 percent ownership stake in the company. 

Shares of Neuronetics are down close to 80 percent over the last year. They were trading at $3.52 on Monday. The company generated revenue of $55.3 million last year and recorded a net loss of $31.2 million. 

According to the filing, Cannell and Robert Cascella, chairman of Neuronetics, had a telephone conversation on June 21. During the talk, Cannell requested for a director, who lives near Malvern and whose name was not disclosed, to be appointed to the company’s board. 

Read more about Neuronetics in the Philadelphia Business Journal.