Greenbrook TMS Withdraws Public Offering of Common Shares

Rhea-AI Summary

Greenbrook TMS Inc. (NASDAQ: GBNH) has officially withdrawn its public offering of common shares due to unfavorable market conditions. The decision follows the successful closing of a US$23.5 million private placement under Rule 506(c) of the U.S. Securities Act. The company will not proceed with its short form base PREP prospectus in Canada or its registration statement in the U.S. Greenbrook operates 129 treatment centers, providing FDA-cleared TMS therapy for mental health disorders.

Positive

• Successful completion of a US$23.5 million private placement provides funding.
• Greenbrook operates 129 treatment centers, showcasing substantial infrastructure.

Negative

• Withdrawal of the public offering may signal market instability or investor sentiment issues.
• No additional funding will be accessed through the public market, limiting growth opportunities.

Greenbrook TMS Inc. (TSX: GTMS, NASDAQ: GBNH) (“Greenbrook” or the “Company”) today announced that it has elected to withdraw its previously announced public offering of common shares (the “Offering”). In light of market conditions existing at the time the Offering was commenced, and the subsequent completion of the Company’s previously announced US$23.5 million private placement pursuant to Rule 506(c) under the U.S. Securities Act of 1933, the Company has determined to withdraw its short form base PREP prospectus in Canada and its registration statement on Form F-10 in the United States and, accordingly, will not be proceeding with the Offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy ‎any securities in any jurisdiction in which such offer, solicitation or sale would be ‎unlawful.

About Greenbrook TMS Inc.

Operating through 129 Company-operated treatment centers, Greenbrook is a leading provider of TMS therapy, an FDA-cleared, non-invasive therapy for the treatment of Major Depressive Disorder and other mental health disorders, in the United States. TMS therapy provides local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation. Greenbrook has provided more than 620,000 TMS treatments to over 17,000 patients struggling with depression.

Cautionary Note Regarding Forward-Looking Information

Certain information in this press release may constitute forward-looking information within the meaning of applicable securities laws in Canada and the United States, including the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Company’s current annual information form and in the Company’s other materials filed with the Canadian securities regulatory authorities and the SEC from time to time, available at www.sedar.com and www.sec.gov, respectively. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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FAQ

Why did Greenbrook TMS withdraw its public offering of common shares?

Greenbrook TMS withdrew its public offering due to unfavorable market conditions.

What was the amount of the private placement completed by Greenbrook TMS?

The company successfully completed a private placement amounting to US$23.5 million.

How many treatment centers does Greenbrook TMS operate?

Greenbrook TMS operates 129 treatment centers across the United States.

What type of therapy does Greenbrook TMS provide?

Greenbrook TMS provides FDA-cleared TMS therapy for Major Depressive Disorder and other mental health disorders.

What are the implications of withdrawing the public offering for shareholders?

Withdrawing the offering may indicate market instability and limit growth prospects, which could affect shareholder confidence.