Greenbrook TMS Inc. (NASDAQ: GBNH) saw its shares move tentatively backward Friday, on announcing that it has (i) completed a non-brokered private placement of common shares of the Company for aggregate gross proceeds of approximately $6.25 million U.S., and (ii) entered into amendments to its credit facility with Madryn Asset Management, LP and affiliates thereof, whereby Madryn has agreed to extend two additional tranches of debt financing to the Company in an aggregate principal amount of $2.0 million U.S.
Pursuant to the Private Placement, an aggregate of 11,363,635 Common Shares were issued at a price of $0.55 U.S. per share, for aggregate gross proceeds to the Company of approximately $6.25 million U.S. The Private Placement included investments by Madryn, together with certain of the Company's other major shareholders, including Greybrook Health Inc. and affiliates of Masters Special Situations LLC.
The Company intends to use the proceeds from the Private Placement to finance the Company's previously announced ongoing restructuring plan as well as for working capital and general corporate purposes, which may include the repayment of indebtedness. In connection with the Private Placement, all investors have received customary registration rights.
Greenbrook is a leading provider of Transcranial Magnetic Stimulation and Spravato® (esketamine nasal spray), FDA-cleared, non-invasive therapies for the treatment of Major Depressive Disorder and other mental health disorders, in the United States.
GBNH shares fell back five cents, or 2.6%, to $1.87
