Greenbrook TMS has received final approval from the Ontario Superior Court of Justice for its previously announced acquisition plan by Neuronetics.
The court-approved arrangement allows Neuronetics to acquire all the issued and outstanding shares of Greenbrook.
Shareholders will receive a fraction of Neuronetics’ common stock for each Greenbrook share upon the transaction’s closing.
The approval follows a successful shareholder vote on 8 November 2024, where over 99% of Greenbrook shareholders and minority shareholders approved the proposed acquisition.
Neuronetics also secured the necessary stockholder approvals on the same day.
The transaction is expected to close by the end of November 2024, pending customary closing conditions.
The all-stock deal was announced in August this year without disclosing the financial details.
As part of the Arrangement, Neuronetics plans to delist Greenbrook’s common shares from the OTCQB Market.
Greenbrook will also apply to cease being a reporting issuer under Canadian securities laws, effectively terminating its public reporting obligations in Canada.
Greenbrook operates 118 treatment centres across the US, specialising in Transcranial Magnetic Stimulation (TMS) and Spravato, a US Food and Drug Administration (FDA)-approved, non-invasive therapy for Major Depressive Disorder (MDD) and other mental health conditions.
TMS uses targeted electromagnetic stimulation to improve mood regulation, while Spravato is designed for adults with treatment-resistant depression or MDD with suicidal thoughts or actions.
Its NeuroStar device is a non-drug, non-invasive treatment designed to improve the quality of life for individuals with neurohealth conditions.
The acquisition of Greenbrook by Neuronetics offers several strategic advantages, including the creation of a vertically integrated organisation with greater scale to deliver TMS therapy.
Neuronetics expects increased brand awareness for NeuroStar TMS, as marketing efforts will now be unified under a single brand, enhancing visibility among patients, caregivers, and providers.
The acquisition also allows for more consistent delivery of best practices, with centralised management enabling the standardisation of operations across all Greenbrook locations.
Additionally, the customers will benefit from expanded training opportunities, access to centralised services, and the ability to leverage regional and national payor contracts.
Other operational benefits include outsourced reimbursement billing, improved revenue cycle management, and a national call centre.
The combined company will operate under the name Neuronetics and continue trading on the NASDAQ stock exchange under the ticker symbol STIM.
