Greenbrook TMS Provides Update on Successful Acquisition of TMS
TORONTO–(BUSINESS WIRE)–Greenbrook TMS Inc. (TSX: GTMS, NASDAQ: GBNH) (“Greenbrook“or the”Company), a leading provider of transcranial magnetic stimulation (“SMT”) therapy in the United States, today announced an update on the status of its previously announced proposed acquisition (the “Acquisition“) of Check Five LLC, a Delaware limited liability company (doing business as “Success TMS”) (“TMS Success”). Greenbrook and Success TMS continue to work diligently to complete the acquisition and now expect to complete the acquisition in early Q3 2022.
As previously announced on May 15, 2022, Greenbrook has entered into a Member Interest Purchase Agreement pursuant to which Greenbrook will acquire Success TMS, with the intention of securing additional debt financing from a third party lender to fund the Company’s future expansion plans and for general corporate and working capital purposes.
As previously reported, on March 30, 2022, the Company received a waiver from Oxford Finance LLC (“Oxford”) regarding the Company’s obligation under the existing credit agreement to provide annual audited financial statements for the fiscal year 2021 which do not contain any “going concern” or similar qualification or exception (the “Waiver”). In consideration for the waiver, the company has agreed to complete an equity and/or subordinated debt offering for proceeds of at least $12 million by June 30, 2022. In light of the pending acquisition and proposed debt financing processes, Oxford has agreed to extend the waiver until July 15, 2022.
“We are very pleased with the progress we have made on the acquisition. We believe the acquisition will demonstrate our ability to deliver on one of the key pillars of our sustained growth strategy,” said Bill Leonard, President and Chief Executive Officer. “This acquisition will allow us to continue to expand our national footprint of TMS centers across the United States and accelerate our path to profitability. We are excited to begin working with our new colleagues at Success TMS who share our passion for providing exceptional care to patients with depression and other mental disorders.
About Greenbrook TMS Inc.
Operating through 148 company-operated treatment centers, Greenbrook is a leading provider of TMS therapy, an FDA-approved non-invasive therapy for the treatment of major depressive disorder and other mental health disorders, in the United States. -United. TMS therapy delivers local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation. Greenbrook has provided over 840,000 TMS treatments to over 24,000 patients with depression.