Greenbrook TMS, a provider of mental health therapy services, entered into the 18th amendment to its credit facility with affiliates of Madryn Asset Management. As part of the amendment, the Greenbrook secured an additional $2,045,685.28 in senior secured term loans from Madryn under the credit facility (the new loan). After giving effect to the new loan, Greenbrook has an aggregate amount of approximately $67.5 million outstanding under the credit facility.
The new loan also provides Madryn with the option to convert up to approximately $185,971 of the outstanding principal amount of the new loan into common shares of the company at a conversion price per share equal to $1.90, subject to customary anti-dilution adjustments (the conversion instrument). This conversion feature corresponds to the conversion provisions for the loans previously issued under the credit facility, which provide Madryn with the option to convert a portion of the outstanding principal amount of the loans into common shares at the conversion price. After giving effect to the issuance of the conversion instrument, Madryn has the option to convert up to an aggregate of approximately $6.1 million of the outstanding principal amount of the loans into common shares at the conversion price.
Greenbrook expects to use the proceeds of the new for general corporate and working capital purposes. The company is also currently considering additional near-term financing options to address its future liquidity needs.
Operating through 133 company-operated treatment centers, Greenbrook is a provider of transcranial magnetic stimulation therapy and Spravato (esketamine nasal spray), which are both non-invasive therapies for the treatment of major depressive disorder and other mental health disorders.
