Greenbrook TMS Inc. - GBNH STOCK NEWS

Greenbrook TMS Inc. (NASDAQ: GBNH) reported its Q4 2022 and Fiscal 2022 results, showcasing a 32% increase in revenue to $69.1 million. This growth is attributed to the acquisitions of Success TMS and Achieve TMS East/Central. Patient starts surged by 44% to 9,253, with treatment volumes up 38% to 312,940. Despite these gains, the company recorded a comprehensive loss of $62.4 million, significantly impacted by a $20.7 million impairment loss. Greenbrook initiated a Restructuring Plan aimed at enhancing profitability and reducing overhead costs, with expected annual savings of $22 million to $25 million. The fourth quarter revenue reached a record $21.1 million, reflecting a 50% year-over-year growth.

Greenbrook TMS Inc. (NASDAQ: GBNH) will release its operational and financial results for the fourth quarter and year-end 2022 after market hours on April 17, 2023. This marks a critical update for investors monitoring the company's performance.

The conference call will take place on April 18, 2023, at 10:00 a.m. ET, hosted by CEO Bill Leonard and CFO Erns Loubser, to discuss the quarterly results. Investors can join the call via toll-free numbers or through the webcast available on Greenbrook's investor relations page.

Greenbrook operates 133 treatment centers in the U.S., offering Transcranial Magnetic Stimulation (TMS) and Spravato® therapies, addressing Major Depressive Disorder and other mental health conditions.

Greenbrook TMS Inc. (NASDAQ: GBNH) announced a management cease trade order (MCTO) from the Ontario Securities Commission on April 5, 2023, due to its inability to file the annual report for the year ended December 31, 2022, by the March 31, 2023 deadline. The MCTO restricts trading for the CEO and CFO while not affecting other shareholders. The company aims to complete the audit of its financial statements and file the required documents by April 17, 2023. Greenbrook confirmed no material changes or defaults have occurred since the initial announcement and it will continue to issue bi-weekly updates as required. The company operates 133 treatment centers in the U.S., providing TMS and Spravato® therapies for mental health disorders, having delivered over one million treatments to more than 27,000 patients.

Greenbrook TMS Inc. (NASDAQ: GBNH) announced that the Ontario Securities Commission (OSC) has granted its application for a management cease trade order due to the company's failure to file its annual report on Form 20-F for the year ended December 31, 2022, by the deadline of March 31, 2023. This order restricts trading in Greenbrook's securities by its President and CFO but allows other shareholders to continue trading. The delay in filing is due to the need for additional analysis regarding potential non-cash impairment charges related to a restructuring plan. The Company expects to file the required documents by April 17, 2023, and will issue bi-weekly status reports during the default period.

On April 3, 2023, Greenbrook TMS Inc. (NASDAQ: GBNH) announced an amendment to its master sales agreement with Neuronetics. The agreement converts a US$5.7 million account balance into a US$6.0 million secured promissory note, which is expected to improve cash flow. The note matures on March 31, 2027, with an interest rate of the daily secured overnight financing rate plus 7.65%. Additionally, Greenbrook must pay approximately US$450,000 monthly for treatment sessions and cover relocation costs for TMS devices. The company’s restructuring plan, alongside this financing, aims to strengthen its financial position and facilitate operations through its 133 treatment centers.

On March 29, 2023, Greenbrook TMS (NASDAQ: GBNH) announced a delay in filing its annual report on Form 20-F for the year ended December 31, 2022. Both management and external auditors, KPMG LLP, require additional information regarding potential non-cash impairment charges tied to the Company's restructuring plan. The filing deadline of March 31, 2023, will not be met, and the Company anticipates submitting the necessary documents by April 17, 2023. Greenbrook has applied for a management cease trade order from the Ontario Securities Commission and has received a waiver from its lender regarding the credit facility. No insolvency proceedings are pending.

Greenbrook TMS Inc. (NASDAQ: GBNH) announced the completion of a non-brokered private placement, raising approximately US$6.25 million through the issuance of 11,363,635 common shares at US$0.55 each. The proceeds will support the company’s restructuring plan, general corporate purposes, and debt repayment. Additionally, Greenbrook secured a US$2.0 million debt financing from Madryn Asset Management, which includes a conversion option for up to US$182,000 into common shares at US$1.90. The financing aims to enhance liquidity as the company continues to navigate ongoing financial challenges.

On March 6, 2023, Greenbrook TMS Inc. (NASDAQ: GBNH) announced a comprehensive restructuring plan aimed at boosting profitability and operational efficiency. The plan includes closing 50 treatment centers, impacting about 20-25% of the workforce, and will focus on the most profitable centers contributing nearly 90% of Q4 2022 revenue. Anticipated annual cost savings range from US$22 million to US$25 million. Despite the workforce reduction, the company prioritizes patient care quality. The restructuring and related costs are estimated between US$1 million and US$2 million, expected by the end of 2023.