Greenbrook TMS has successfully obtained $2.5 million in senior secured term loans through its twentieth amendment to the credit facility with affiliates of Madryn. The funds will contribute to general corporate and working capital needs. This amendment brings the total outstanding under the Credit Facility, collectively known as the “Loans,” to approximately $72 million.
As part of the amendment, Madryn holds the option to convert up to around $227,273 of the New Loan into common shares of the Company (“Common Shares”) at a conversion price of $1.90 per share. This aligns with the conversion provisions for the previously issued Loans. After this issuance, Madryn can convert up to approximately $6.6 million of the outstanding principal amount of the Loans into Common Shares at the Conversion Price.
The Company plans to utilize the proceeds from the New Loan for general corporate purposes. In parallel, Greenbrook is exploring additional near-term financing options to address its future liquidity needs.
MI 61-101 Disclosure
As Madryn is an insider of the Company, the transactions are considered “related party transactions” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. This exemption is based on the fair market value of the transaction, involving interested parties, not exceeding 25% of the Company’s market capitalization.
About Greenbrook TMS Inc.
Greenbrook operates 130 Company-operated treatment centers, offering Transcranial Magnetic Stimulation (“TMS”) therapy and Spravato® (esketamine nasal spray). These FDA-cleared, non-invasive therapies target Major Depressive Disorder (“MDD”) and other mental health disorders in the United States. TMS therapy delivers local electromagnetic stimulation to brain regions associated with mood regulation. Spravato® treats adults with treatment-resistant depression and depressive symptoms in adults with MDD experiencing suicidal thoughts or actions. Greenbrook has administered over 1.3 million treatments to more than 40,000 patients dealing with depression.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release, including those regarding the New Loan and its expected use of proceeds, may constitute “forward-looking information.” Forward-looking information involves various risks and uncertainties and is based on the Company’s expectations, estimates, and projections of future events or results. Such information includes statements about the Company’s financial outlook, anticipated events, business strategy, growth plans, technological development, and other related matters. Actual results and future events could differ materially from those anticipated in such forward-looking information. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.