Greenbrook TMS Inc. Completes Significant Note Conversion

Greenbrook TMS Inc. Completes Major Conversion of Convertible Notes

Greenbrook TMS Inc. (OTC: GBNHF) has accomplished a significant financial milestone by successfully converting approximately US$10.5 million of its unsecured subordinated convertible promissory notes into common shares. This transformation of convertible notes, known as the Conversion, represents a robust step in the company’s ongoing mission to innovate and expand within the mental health sector.

Details of the Conversion Process

The notes were converted at a price of US$0.0780 per share, resulting in the issuance of a substantial 134,667,522 common shares to noteholders. As a result of this conversion, the total number of Common Shares issued and outstanding has increased to 168,635,122. This adjustment reflects Greenbrook's commitment to enhancing shareholder value while fortifying its capital structure.

Understanding the Note Purchase Agreement

The conversion was executed in accordance with the established terms outlined in the Note Purchase Agreement with notable investors like Madryn Asset Management and Greybrook Health. Upon completion of the Conversion, all outstanding Convertible Notes, along with any accrued interest, have been satisfied, leading to a simplified financial structure for Greenbrook.

Investor Implications Post-Conversion

Investor sentiment remains vital as Greybrook Health’s stake in Greenbrook has notably increased. Prior to the Conversion, Greybrook held 20.0% of the issued common shares. After the Conversion, this stake rose to approximately 30.1%, marking a significant 9.5% increase in ownership. This change underscores Greybrook's continued confidence in Greenbrook's growth strategy.

Madryn's Growing Influence

Similarly, Madryn Health Partners, before the conversion, owned a considerable share of approximately 18.73%. Post-Conversion, their ownership expanded to nearly 39.39% on a partially diluted basis. This situation positions Madryn as a powerful entity within the shareholder structure, reinforcing their influence within the boardroom and driving strategic initiatives.

Strategic Vision and Future Growth

Greenbrook TMS Inc. focuses on cutting-edge clinical solutions, including Transcranial Magnetic Stimulation (TMS) therapy and Spravato for treating Major Depressive Disorder and other mental health disorders. With 118 treatment centers operational across the country, Greenbrook has treated over 49,000 patients, delivering more than 1.61 million treatments. This robust patient engagement illustrates the company's commitment to addressing mental health needs effectively.

Plans for Continued Investment and Development

The management of Greenbrook is eager to explore further growth opportunities. Greybrook Health and Madryn have expressed potential interest in acquiring additional stakes in the company, showcasing their long-term commitment to enhancing Greenbrook’s market position. As the landscape of mental health care continues to evolve, Greenbrook's strategic partnerships and investment decisions will be crucial for its sustainability and success.

About Greenbrook TMS Inc.

Greenbrook TMS Inc. is recognized for its leadership in delivering next-generation treatments for mental health disorders. By employing advanced techniques like TMS therapy, Greenbrook opens new avenues for recovery for numerous individuals grappling with depression and related challenges. The company is driven by a mission to harness innovative technologies in mental health care, providing accessible and effective treatment options.

Frequently Asked Questions

What is the significance of the Convertible Notes Conversion?

The conversion reflects Greenbrook's strategy to improve its capital structure by increasing the number of outstanding shares, thereby enhancing shareholder value.

Who are the major stakeholders involved in the Conversion?

Major stakeholders include Madryn Asset Management and Greybrook Health, both of whom have increased their ownership percentage post-Conversion.

How has this Conversion impacted Greenbrook's share value?

The conversion may lead to increased liquidity and investor confidence, potentially influencing the share price positively as the company solidifies its financial footing.

What treatments does Greenbrook offer?

Greenbrook provides Transcranial Magnetic Stimulation (TMS) therapy and Spravato, focusing on treating Major Depressive Disorder and related mental health issues.

What strategies is Greenbrook considering for future growth?

The company is exploring additional investments and partnerships to expand its treatment offerings and operational capacity within the mental health sector.

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