Greenbrook TMS entered into the 21st amendment to the company’s credit facility with affiliates of Madryn Asset Management. As part of the amendment, the company secured an additional $4,015,548 in senior secured term loans from Madryn under the credit facility. After giving effect to the new loan, the company has an aggregate amount of approximately $76 million outstanding under the credit facility.
The proceeds of the new loan is expected to be used by the company to fund certain debt service obligations of the company and for general corporate and working capital purposes. The company is also currently considering additional near-term financing options to address its future liquidity needs.
The amendment also provides Madryn with the option to convert up to approximately $365,050 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. 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 $7 million of the outstanding principal amount of the loans into common shares at the conversion price.
The amendment also extends the period during which the company’s minimum liquidity covenant is reduced from $3 million to $300,000 to Jan. 15, 2024.
