GREENBROOK ANNOUNCES CONVERSION OF SUBORDINATED CONVERTIBLE NOTES
Greenbrook TMS Inc. (OTC: GBNHF) has completed the conversion of approximately US$10.5 million in aggregate principal amount of unsecured subordinated convertible promissory notes into common shares. The conversion resulted in the issuance of 134,667,522 common shares at a conversion price of US$0.0780. Following the conversion, there are 168,635,122 common shares issued and outstanding.
The conversion significantly impacted the ownership structure of Greenbrook. Greybrook Health and Greybrook Realty now own approximately 30.1% of the issued and outstanding common shares, an increase of about 9.5%. Madryn and its affiliated entities now own approximately 37.98% of the common shares, an increase of about 19.25% on a non-diluted basis.
Greenbrook TMS Inc. (OTC: GBNHF) ha completato la conversione di circa 10,5 milioni di dollari USA in valore nominale aggregato di note convertibili subordinate non garantite in azioni ordinarie. La conversione ha portato all'emissione di 134.667.522 azioni ordinarie a un prezzo di conversione di 0,0780 dollari USA. Dopo la conversione, ci sono 168.635.122 azioni ordinarie emesse e in circolazione.
La conversione ha avuto un impatto significativo sulla struttura proprietaria di Greenbrook. Greybrook Health e Greybrook Realty possiedono ora circa 30,1% delle azioni ordinarie emesse e in circolazione, un incremento di circa 9,5%. Madryn e le sue entità affiliate possiedono ora circa 37,98% delle azioni ordinarie, con un aumento di circa 19,25% su base non diluita.
Greenbrook TMS Inc. (OTC: GBNHF) ha completado la conversión de aproximadamente 10.5 millones de dólares en monto principal agregado de notas convertibles subordinadas no garantizadas en acciones ordinarias. La conversión resultó en la emisión de 134,667,522 acciones ordinarias a un precio de conversión de 0.0780 dólares. Después de la conversión, hay 168,635,122 acciones ordinarias emitidas y en circulación.
La conversión afectó significativamente la estructura de propiedad de Greenbrook. Greybrook Health y Greybrook Realty ahora poseen aproximadamente 30.1% de las acciones ordinarias emitidas y en circulación, un aumento de aproximadamente 9.5%. Madryn y sus entidades afiliadas ahora poseen aproximadamente 37.98% de las acciones ordinarias, un aumento de aproximadamente 19.25% en una base no diluida.
Greenbrook TMS Inc. (OTC: GBNHF)는 약 1050만 달러의 무담보 후순위 전환사채를 보통주로 전환 완료했습니다. 이 전환으로 134,667,522주의 보통주가 발행되었으며, 전환 가격은 0.0780달러입니다. 전환 후 발행 및 유통 중인 보통주는 168,635,122주입니다.
전환은 Greenbrook의 소유 구조에 중대한 영향을 미쳤습니다. Greybrook Health와 Greybrook Realty는 현재 발행 및 유통 중인 보통주의 약 30.1%를 소유하고 있으며, 이는 약 9.5% 증가한 수치입니다. Madryn 및 그 계열사는 현재 보통주 약 37.98%를 소유하고 있으며, 이는 비희석 기준으로 약 19.25% 증가한 수치입니다.
Greenbrook TMS Inc. (OTC: GBNHF) a terminé la conversion d'environ 10,5 millions de dollars américains en montant principal agrégé d'obligations convertibles subordonnées non sécurisées en actions ordinaires. La conversion a abouti à l'émission de 134,667,522 actions ordinaires à un prix de conversion de 0,0780 dollars américains. Après la conversion, il y a 168,635,122 actions ordinaires émises et en circulation.
La conversion a eu un impact significatif sur la structure de propriété de Greenbrook. Greybrook Health et Greybrook Realty possèdent maintenant environ 30,1% des actions ordinaires émises et en circulation, soit une augmentation d'environ 9,5%. Madryn et ses entités affiliées possèdent maintenant environ 37,98% des actions ordinaires, soit une augmentation d'environ 19,25% sur une base non diluée.
Greenbrook TMS Inc. (OTC: GBNHF) hat die Umwandlung von etwa 10,5 Millionen US-Dollar an aggregiertem Nennbetrag von unbesicherten nachrangigen wandelbaren Schuldscheinen in Stammaktien abgeschlossen. Die Umwandlung führte zur Ausgabe von 134.667.522 Stammaktien zu einem Umwandlungspreis von 0,0780 US-Dollar. Nach der Umwandlung gibt es 168.635.122 Stammaktien die ausgegeben und im Umlauf sind.
Die Umwandlung hatte erhebliche Auswirkungen auf die Eigentümerstruktur von Greenbrook. Greybrook Health und Greybrook Realty besitzen jetzt etwa 30,1% der ausgegebenen und im Umlauf befindlichen Stammaktien, was eine Steigerung von etwa 9,5% darstellt. Madryn und dessen angegliederte Unternehmen besitzen jetzt etwa 37,98% der Stammaktien, was eine Steigerung von etwa 19,25% auf nicht verwässerter Basis darstellt.
- Conversion of US$10.5 million in convertible notes into common shares, potentially improving the company's debt structure
- Significant increase in ownership for major investors Greybrook Health and Madryn, potentially indicating confidence in the company
- Substantial dilution of existing shareholders due to the issuance of 134,667,522 new common shares
- Potential shift in company control with Madryn now owning 37.98% of common shares
The Conversion was completed in accordance with the terms of the note purchase agreement dated August 15, 2023 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Note Purchase Agreement") entered into by the Company, Madryn Asset Management, LP ("Madryn"), Greybrook Health Inc. ("Greybrook Health") and certain other investors party thereto. The Conversion was completed following delivery by Madryn of a conversion notice requiring the conversion in full of all outstanding Convertible Notes held by Madryn and all other holders of Convertible Notes in accordance with the terms of the Note Purchase Agreement. Following completion of the Conversion, there are no Convertible Notes, or accrued and unpaid interest, issued and outstanding.
Early Warning Reporting
Greybrook Health
Before giving effect to the Conversion, Greybrook Health owned, and exercised control or direction over, 6,800,424 Common Shares, representing approximately
Following the Conversion, Greybrook Health and Greybrook Realty own, and exercise control or direction over, prior to any exercise of the Warrants, an aggregate of 50,739,572 Common Shares, representing approximately
Assuming exercise in full of the Warrants, Greybrook Health would be entitled to receive an aggregate of 335,870 Common Shares, which would increase Greybrook Health's ownership interest in the Company by approximately
The securities of Greenbrook were acquired by Greybrook Health for investment purposes. Greybrook Health may determine to purchase additional Common Shares or other securities of the Company in the open market or otherwise or sell all or some of the Common Shares or Warrants (subject to certain transfer restrictions), depending upon price, market conditions, availability of funds, evaluation of alternative investments and other factors.
An early warning report will be filed by Greybrook Health in accordance with applicable Canadian securities laws and will be available on SEDAR+ at www.sedarplus.ca or may be obtained directly from Sasha Cucuz, President & Secretary of Greybrook Health upon request at (416) 322-9700.
Greybrook Health and the Company's head and registered offices are located at 890 Yonge Street, 7th Floor,
Greybrook Health is focused on partnering with strong management teams in the healthcare sector. Greybrook Health applies a hands-on investment approach, assisting management teams to unlock growth potential through deep expertise in commercializing healthcare services, products and medical devices.
Madryn
Before giving effect to the Conversion, Madryn Health Partners II, LP ("MHP II"), Madryn Health Partners II (Cayman Master), LP ("MHP II Cayman") and Madryn Select Opportunities, LP ("MSO" and, together with MHP II and MHP II Cayman, the "Funds") owned but did not exercise control over 6,363,636 Common Shares (MHP II: 393,459; MHP II Cayman: 5,970,177), representing approximately
Before giving effect to the Conversion, Madryn, in its capacity as discretionary investment manager to the Funds, the Advisors, as general partners of the Funds, and the Funds owned and exercised control or direction over (as applicable) (i) 6,363,636 Common Shares (MHP II: 393,459; MHP II Cayman: 5,970,177); (ii) 3,910,605 Common Shares (MHP II: 202,423; MHP II Cayman: 3,071,480; MSO: 636,701) issuable pursuant to conversion instruments issued in connection with a secured credit facility agreement between the Company and Madryn and its affiliates (the "Common Share Conversion Instruments") and (iii) 57,692,306 Common Shares (MHP II: 3,567,076; MHP II Cayman: 54,125,230) issuable upon the conversion of
Following the Conversion, Madryn, in its capacity as discretionary investment manager to the Funds, the Advisors, as general partners of the Funds, and the Funds owned and exercised control or direction over (as applicable) 64,055,942 Common Shares, representing approximately
Following the Conversion, Madryn, its capacity as discretionary investment manager to the Funds, the Advisors, as general partners of the Funds, and the Funds own and exercise control or direction over (as applicable), an aggregate of 67,966,547 Common Shares, representing approximately
The securities of Greenbrook were acquired by Madryn for investment purposes. Madryn may determine to purchase additional Common Shares or other securities of the Company in the open market or otherwise or sell all or some of the Common Shares or other securities, depending upon price, market conditions, availability of funds, evaluation of alternative investments and other factors.
On August 11, 2024, the Company entered into an arrangement agreement (the "Arrangement Agreement") with Neuronetics, Inc. ("Neuronetics") pursuant to which Neuronetics will acquire all of the issued and outstanding Common Shares of the Company (the "Arrangement"). The Arrangement Agreement provides that Neuronetics will take all necessary action to ensure that, immediately following completion of the Arrangement, the board of directors of Neuronetics shall consist of seven directors, two of which will be appointed by Madryn.
Simultaneously with the execution of the Arrangement Agreement and in connection with the Arrangement, Neuronetics and certain shareholders of the Company, including Madryn, have entered into voting and support agreements, pursuant to which Madryn has agreed, among other things, to vote its securities of the Company in favour of the approval of the Arrangement and against any alternative proposal.
A copy of the early warning report to be filed under applicable securities laws will be available under the Company's SEDAR+ profile at www.sedarplus.ca. and may be obtained upon request from Madryn at 330 Madison Avenue, Floor 33,
About Greenbrook TMS Inc.
Operating through 118 Company-operated Treatment Centers, Greenbrook is a leading provider of Transcranial Magnetic Stimulation ("TMS") and Spravato® (esketamine nasal spray), FDA-cleared, non-invasive therapies for the treatment of Major Depressive Disorder ("MDD") and other mental health disorders, in
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SOURCE Greenbrook TMS Inc.
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