Greenbrook TMS, a provider of transcranial magnetic stimulation and pharmaceutical treatments, entered into amendments to its credit facility with Madryn Asset Management and affiliates thereof, with Madryn agreeing to extend two additional tranches of debt financing to the company in an aggregate principal amount of $2 million. The amendments were completed in parallel to a non-brokered private placement of common shares of the company yielding aggregate gross proceeds of approximately $6.25 million.
Madryn funded $1 million of the new loan prior to closing of the private placement, with the balance expected to be funded by the end of the month. The terms and conditions of the new loan are consistent with the terms and conditions of Greenbrook’s existing aggregate $59 million loan under its credit facility in all material respects.
The new loan also provides Madryn with the option to convert up to approximately $182,000 of the outstanding principal amount of the new loan into common shares at a conversion price per share equal to $1.90, subject to customary anti-dilution adjustments. This conversion feature corresponds to the conversion provisions for the existing loan, which provides Madryn with the option to convert up to approximately $5.4 million of the outstanding principal amount of the existing loan into common shares at the same conversion price. After giving effect to the new loan, an aggregate of approximately $5.6 million of the Madryn loan is convertible into common shares at the same conversion price.
