GREENBROOK TMS INC. TORONTO, March 21, 2024 /PRNewswire/ - Greenbrook TMS Inc. (OTC: GBNHF) ("Greenbrook" or the "Company") announced that the OTC Market Group Inc. ("OTC") has approved the Company's application to quote the Company's common shares (the "Common Shares") on the OTCQB Market. The Company's Common Shares will be quoted on OTCQB starting on March 22, 2024, under the symbol GBNHF.
The Company is also announcing that following the suspension of the Common Shares from trading on Nasdaq Capital Market ("Nasdaq") on February 26, 2024, the Company plans to provide formal notice to Nasdaq of its intention to formally delist the Common Shares from Nasdaq on a voluntary basis, in advance of the anticipated filing by Nasdaq of a Form 25 (Notification of Removal of Listing) with the Securities and Exchange Commission (the "SEC"). As previously disclosed, the Common Shares were suspended pursuant to a final delisting notice sent to the Company by the Listing Qualifications Department of Nasdaq due to the continued failure of the Company to satisfy either the $1.00 minimum bid price listing requirement in Nasdaq Listing Rule 5550(a)(2) or the minimum stockholders' equity requirements in Nasdaq Listing Rule 5550(b).
The Company currently anticipates that it will file its own Form 25 with the SEC on or about April 1, 2024, which would complete the process for delisting its Common Shares from Nasdaq when the Form 25 becomes effective no earlier than ten days thereafter. The Form 25 will also serve to deregister the Common Shares under Section 12(b) of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"), effective 90 days thereafter. The Company has determined to file its own Form 25 in advance of the anticipated Nasdaq filing of a Form 25 in order to accelerate the timeline for deregistration under Section 12(b) of the Exchange Act, which will reduce certain SEC reporting compliance burdens, and therefore lower the Company's administrative expenses and free up management time to operate the business and further develop its strategy.
Neither the filing of the Form 25 nor the official delisting of the Common Shares will impact the quotation of the Common Shares on the OTCQB.
Operating through 130 Company-operated treatment centers, Greenbrook is a leading provider of Transcranial Magnetic Stimulation ("TMS") therapy and Spravato® (esketamine nasal spray), FDA-cleared, non-invasive therapies for the treatment of Major Depressive Disorder ("MDD") and other mental health disorders, in the United States. TMS therapy provides local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation. Spravato® is offered to treat adults with treatment-resistant depression and depressive symptoms in adults with MDD with suicidal thoughts or actions. Greenbrook has provided more than 1.3 million treatments to over 40,000 patients struggling with depression.
Certain information in this press release may constitute forward-looking information within the meaning of applicable securities laws in Canada and the United States, including the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: macroeconomic factors such as inflation and recessionary conditions, substantial doubt regarding the Company's ability to continue as a going concern due to recurring losses from operations; inability to increase cash flow and/or raise sufficient capital to support the Company's operating activities and fund its cash obligations, repay indebtedness and satisfy the Company's working capital needs and debt obligations; prolonged decline in the price of the Common Shares reducing the Company's ability to raise capital; inability to satisfy debt covenants under the Company's credit facility and the potential acceleration of indebtedness; including as a result of an unfavorable decision in respect of the litigation with Benjamin Klein; risks related to the ability to continue to negotiate amendments to the Company's credit facility to prevent a default; risks relating to the Company's ability to deliver and execute on the previously-announced restructuring plan (the "Restructuring Plan") and the possible failure to complete the Restructuring Plan on terms acceptable to the Company or its suppliers (including Neuronetics, Inc.), or at all; risks relating to maintaining an active, liquid and orderly trading market for the Common Shares as a result of the Company's suspension of trading on Nasdaq; risks relating to the Company's ability to realize expected cost-savings and other anticipated benefits from the Restructuring Plan; risks related to the Company's negative cash flows, liquidity and its ability to secure additional financing; increases in indebtedness levels causing a reduction in financial flexibility; inability to achieve or sustain profitability in the future; inability to secure additional financing to fund losses from operations and satisfy the Company's debt obligations; risks relating to strategic alternatives, including restructuring or refinancing of the Company's debt, seeking additional debt or equity capital, reducing or delaying the Company's business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining bankruptcy protection, and the terms, value and timing of any transaction resulting from that process; claims made by or against the Company, which may be resolved unfavorably to us; risks relating to the Company's dependence on Neuronetics, Inc. as its exclusive supplier of TMS devices. Additional risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities and the SEC from time to time, available at www.sedarplus.ca and www.sec.gov, respectively. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Greenbrook TMS Inc.
