Neuronetics provides Greenbrook TMS with $6M promissory note

The Company announced that it has converted approximately $5.9 million of Greenbrook’s outstanding accounts payable balance to the Company and related transaction expenses into a $6.0M senior secured promissory note. All amounts borrowed under the Note will bear interest at a rate equal to the sum of the floating interest rate of daily secured overnight financing rate as administered by the Federal Reserve Bank of New York on its website, plus 7.65%. The Note matures on March 31, 2027. The Company has taken a security interest in all Greenbrook’s assets on a pari passu with Greenbrook’s lender and, under certain circumstances, will receive warrants to purchase Greenbrook shares at a discount to market. Additionally, Greenbrook has agreed to relocate the NeuroStar systems from the treatment centers that will be closed in connection with Greenbrook’s recently announced Restructuring Plan, to be installed and utilized in Greenbrook’s treatment centers that will remain open.