Greenbrook TMS Completes Notable Convertible Note Conversion

Greenbrook TMS to Increase Common Shares through Conversion

Greenbrook TMS Inc. (OTC: GBNHF) has successfully completed the conversion of approximately US$10.5 million in subordinated convertible notes. This significant conversion process involved transforming the notes into common shares of the company, a step that the management believes will strengthen its financial structure and benefit shareholders.

Details of the Conversion Process

The conversion, priced at US$0.0780 per share, resulted in the issuance of a substantial 134,667,522 common shares. Following this financial maneuver, the total number of outstanding common shares within Greenbrook stands at 168,635,122. This conversion sets the stage for potential growth, enhancing the capital structure of the company significantly.

Understanding the Note Purchase Agreement

This conversion was executed in alignment with a prior agreement with key investors including Madryn Asset Management, LP, and Greybrook Health Inc. They initiated the conversion by submitting a notice that required converting all outstanding notes. Greenbrook is now free from any existing convertible notes or unpaid interest, positioning itself favorably for future growth.

Impact of the Conversion on Stakeholders

Greybrook Health previously held about 20.0% of Greenbrook's common shares before the conversion. Post-conversion, this percentage has increased to approximately 30.1%, highlighting that Greybrook Health retains significant influence in the company. This level of ownership reflects not only a trust in Greenbrook’s potential but also a commitment to its future performance.

Company's Vision and Future Prospects

Greenbrook remains focused on delivering innovative treatments for mental health conditions, specifically in the realm of Transcranial Magnetic Stimulation (TMS). The company currently manages 118 treatment centers across the U.S., providing valuable therapy to thousands of patients. With this conversion, Greenbrook aims to invest in expanding its treatment capabilities and enhancing patient care.

Further Investment Opportunities

The convertible notes were acquired with the intent of facilitating investment in the company's growth. Post-conversion, both Greybrook and Madryn have expressed intentions to assess additional investment opportunities based on market conditions and their strategic objectives.

About Greenbrook TMS Inc.

Greenbrook is dedicated to transforming mental health treatment through non-invasive procedures. They have administered over 1.61 million treatments to patients facing the challenges of Major Depressive Disorder (MDD) and other mental health disorders. Their commitment to innovative therapies underscores their role as a leader in the mental health space.

Frequently Asked Questions

What is the significance of the convertible note conversion?

This conversion enables Greenbrook to increase its common shares significantly, strengthening its capital structure and reducing liabilities.

Who are the main players in the note purchase agreement?

The primary involved parties include Madryn Asset Management, LP and Greybrook Health Inc., who are key investors in Greenbrook.

How does this conversion affect shareholders?

Shareholders, notably Greybrook, have increased their stake in the company, enhancing their influence and potential gains as the company grows.

What therapies does Greenbrook TMS offer?

Greenbrook specializes in Transcranial Magnetic Stimulation (TMS) and Spravato® treatments, targeting patients suffering from Major Depressive Disorder and similar conditions.

What are the future plans for Greenbrook TMS?

The company aims to grow its treatment center network and enhance its service offerings, furthering its mission to provide effective mental health solutions.

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