Genesis Healthcare, Inc. announced that it expects to receive funding from ReGen Healthcare, LLC
March 01, 2021
Share
Genesis Healthcare, Inc. (NYSE:GEN) announced that it has entered into investment agreement for a private placement of convertible promissory note on March 2, 2021. The company will receive funding in tranches. Under the agreement, the Investor has an option exercisable on or prior to March 31, 2021 to purchase for $25,000,000, a second convertible promissory note, which is convertible into 34,594,079 conversion baskets which, together with the conversion baskets issuable upon conversion of the Initial Note, represent 33.3% of the fully diluted share capital of the Company as of the Initial Closing Date, subject to certain adjustments.
On the same day, the company received $50,000,000 in first tranche closing. The transaction included participation from ReGen Healthcare, LLC. The notes are convertible into 69,500,755 baskets of securities each comprised of one Class A common unit and one Class C common stock, subject to adjustment, which represent 25% of the fully diluted share capital.
Genesis Healthcare, Inc. is a holding company. The Company provides services to skilled nursing facilities and assisted/senior living communities. It also specializes in contract rehabilitation therapy, respiratory therapy, physician services, staffing services, and accountable care. It provides approximately 250 skilled nursing centers and senior living communities in 22 states nationwide. Its subsidiaries also supply rehabilitation therapy to approximately 1,400 locations in 43 states and the District of Columbia. It offers a range of services, which include rehabilitation therapy, memory support, long-term care, and assisted/senior living. Its rehabilitation therapy includes transitional care, short stay care, ventilator rehabilitation, dialysis, cardiac management, and pulmonary management. Its long-term care service provides 24-hour skilled nursing services for elderly residents and people with a chronic condition or a prolonged illness. It also offers hospice care services.