Jorey Chernett, who owns approximately 14.12% of Neuronetics Inc. (NASDAQ: STIM) shares, has delivered a letter to the company's board calling for a comprehensive review of strategic alternatives, including the potential sale of the TMS business.

Chernett, described as the largest independent shareholder of the medical device company, sent the letter on April 6, according to a press release statement. The letter outlines potential value delivery to shareholders through a sale of the transcranial magnetic stimulation business and standalone operation of the clinic business.

The shareholder's letter states that applying comparable multiples to Neuronetics' constituent businesses implies equity value of 5-7 times the current stock price. The letter argues that anticipated synergies from combining TMS and Greenbrook following the December 2024 acquisition have not materialized.

According to the letter, pure-play peers have outperformed Neuronetics since the December 2024 acquisition and now trade at higher multiples. Chernett contends that a micro-cap enterprise with finite resources cannot effectively serve two structurally distinct businesses.

The letter calls for the board to engage qualified advisors to evaluate all strategic alternatives in the interest of shareholders. Chernett argues that both the TMS and clinic businesses have market-leading positions with expanding addressable markets and industry tailwinds.

Neuronetics develops and commercializes neurostimulation devices for treating psychiatric and neurological disorders. The company's NeuroStar Advanced Therapy system is used for treating major depressive disorder and other conditions through transcranial magnetic stimulation.