TSL Express Daily News

TORONTO--(BUSINESS WIRE)--NeuPath Health Inc. (TSXV:NPTH), (“NeuPath” or the “Company”), owner and operator of a network of clinics delivering category-leading chronic pain treatment, today announced that it has entered into a new credit agreement (the “Credit Agreement”) with the National Bank of Canada (“National Bank”), providing an aggregate of up to $13.5 million, comprising of a (i) $4.0 million revolving credit facility (the “Revolving Facility”), (ii) $3.0 million non-revolving delayed draw term loan facility (the “Acquisition Line”), and (iii) $6.5 million non-revolving term loan facility (the “Term Loan” and together with the Revolving Facility and the Acquisition Line, the “Credit Facilities”). The Credit Facilities provide NeuPath with additional capital to execute on its growth plan, while also helping the Company refinance its existing debt on favourable terms.

The Revolving Facility permits the Company to draw amounts at any time, subject to satisfying certain financial covenants, for working capital, capital expenditures and general corporate purposes.

The Acquisition Line is made available to the Company to finance future acquisitions, subject to certain terms and conditions.

The Term Loan is made available to the Company in the amount of approximately $6.5 million for the purpose of consolidating and refinancing the Company’s existing debt. As a result of the Term Loan, the Company has repaid all amounts outstanding under its credit facilities with the Royal Bank of Canada and has subsequently closed such facilities. In addition, the Company has redeemed all outstanding debentures, as more particularly described below, and repaid all outstanding related party loans.

Interest rates for amounts outstanding under the Credit Facilities are calculated based on the National Bank’s prime lending rate, plus applicable margins, which are calculated based on certain financial ratios. As of today, the Company has not drawn down on the Revolving Facility or the Acquisition Line and has $6.5 million outstanding on the Term Loan.

Pursuant to the terms and conditions of the Credit Agreement, the Credit Facilities will be secured by substantially all of the assets of the Company and its subsidiaries. Additionally, the Company will be required to meet certain financial covenants and to satisfy various affirmative and negative covenants that limit, among other things, the Company’s ability to incur additional indebtedness outside of permitted indebtedness. The Credit Agreement also includes customary events of default, including payment and covenant breaches, bankruptcy events and the occurrence of change of control.

“Our financial and operational turnaround has enabled us to attract excellent terms and rates,” said Joe Walewicz, NeuPath’s Chief Executive Officer. “By cutting our net debt in half and substantially boosting adjusted EBITDA over the last two years, we built the financial foundation to raise non-dilutive capital for accretive growth. With the flexibility to respond to opportunities as we discover them, we’re well-positioned to accelerate growth in 2025 and beyond.”

NeuPath’s growth plan involves recruiting additional physicians to service patients in need, broadening its service offerings, building new locations, and acquiring existing clinics and their teams to provide better access to care for more patients in more Canadian communities. NeuPath is also exploring adjacent markets for opportunities that leverage its brand, real estate footprint and operational capabilities.

Redemption of Debentures

On March 26, 2025, the Company provided notice to holders (the “Debentureholders”) of its outstanding 10% subordinated and postponed unsecured non-convertible debentures (the “Debentures”) notifying Debentureholders of the Company’s intention to redeem all outstanding Debentures, being the aggregate principal amount of $1,453,000 of Debentures as of April 25, 2025 (the “Redemption Date”). In connection with the early redemption of the Debentures, the Company shall pay a redemption amount equal to $1,030 for each $1,000 principal amount of Debentures outstanding, being equal to the aggregate principal amount of $1,496,590, plus all accrued and unpaid interest up to, but excluding, the Redemption Date (collectively, the “Total Redemption Price”).

Proceeds from the Term Loan that are being used to pay the Total Redemption Price are being held in trust by TSX Trust Company, as debenture trustee, until the Redemption Date. Upon payment of the Total Redemption Price on the Redemption Date, all Debentures redeemed shall be cancelled and the Debentureholders shall have no rights in respect thereof, except to obtain payment of their portion of the Total Redemption Price.

Beneficial holders of the Debentures (held through an account with a bank, brokerage firm, financial instrument or other intermediary, each an “Intermediary”) that maintain their interest through CDS should contact their Intermediary with any questions that they may have regarding the redemption.

About NeuPath

NeuPath operates a network of healthcare clinics and related businesses focused on improved access to care and outcomes for patients by leveraging best-in-class treatments and delivering patient-centered multidisciplinary care. We operate a network of medical clinics in Ontario and Alberta that provide comprehensive assessments and rehabilitation services to clients with chronic pain, musculoskeletal/back injuries, sports related injuries and concussions. In addition, NeuPath provides workplace health services and independent medical assessments to employers and disability insurers through a national network of healthcare providers, as well as contract research services to pharmaceutical and biotechnology companies. NeuPath is focused on enabling each individual to live their best life. For additional information, please visit www.neupath.com.

Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the Company’s anticipated access to the Credit Facilities and the use of the proceeds thereunder. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations included in this news release include, among other things, adverse market conditions, risks associated with obtaining and maintaining the necessary governmental permits and licenses related to the business of the Company, increasing competition in the market and other risks generally inherent in the chronic pain, sports medicine, concussion and workplace health services markets. A comprehensive discussion of these and other risks and uncertainties can be found in the Company’s annual information form dated March 26, 2025 filed on SEDAR+ under the Company’s profile at www.sedarplus.ca.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS THE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.