BrainsWay secures two more U.S. mental health provider investments

BURLINGTON, Mass. - BrainsWay Ltd. (NASDAQ & TASE:BWAY) has entered into two additional minority stake strategic investments with U.S. mental health providers, bringing its total to four such investments in 2025, according to a company press release.

The neurostimulation treatment company, which has demonstrated impressive revenue growth of 26.5% over the last twelve months, has signed an equity financing agreement with Tangient ATX Inc., which services the Heading Health clinic network across Texas. The agreement involves an initial $1.5 million investment with potential for up to an additional $2.5 million through milestone-based investments. BrainsWay will receive a minority position in Heading Health in the form of a preferred, annually compounding security.

"Our investment in Heading Health serves our broader strategic initiative to accelerate patient access to and awareness of innovative mental health treatments such as Deep TMS Therapy," said Hadar Levy, BrainsWay’s Chief Executive Officer.

Simon Tankel, Tangient’s Chief Executive Officer, stated, "Entering into this strategic transaction with BrainsWay is a unique opportunity for us at Heading Health to partner with the foremost innovator of neuromodulation technology in the space."

In addition to the Heading Health transaction, BrainsWay recently completed a smaller investment with an east coast-based mental health provider, though specific details were not disclosed.

BrainsWay specializes in Deep Transcranial Magnetic Stimulation technology and has three FDA-cleared indications for major depressive disorder, obsessive-compulsive disorder, and smoking addiction.

The company describes these minority investments as part of its strategy to drive long-term shareholder value by facilitating the growth of commercial partners while maintaining its focus on scientific and technological development.

In other recent news, BrainsWay Ltd. received U.S. FDA clearance for an accelerated treatment protocol using its Deep Transcranial Magnetic Stimulation system for major depressive disorder. This new protocol reduces the acute treatment phase to six days, with five sessions per day, followed by twice-weekly sessions for four weeks. Additionally, BrainsWay has made strategic investments to bolster its position in the mental health sector. The company invested $5 million in Neurolief Ltd., a developer of wearable neuromodulation technology, with an option to acquire the company and provide additional milestone-based funding.

BrainsWay also entered into a strategic equity financing agreement with Axis Management Company, Inc., investing an initial $2.3 million with a potential $1 million additional investment. H.C. Wainwright has reiterated a Buy rating for BrainsWay, maintaining a $17.00 price target following these strategic moves. The investments aim to expand BrainsWay’s offerings, including at-home treatment options for mental health disorders. Neurolief is currently awaiting FDA approval for its Proliv™Rx device, designed to provide at-home brain stimulation therapy for depression. These developments highlight BrainsWay’s ongoing efforts to innovate and expand in the mental health treatment market.

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