Assure Holdings Announces Update to Credit Facility
September 08 2020 - 5:00AM
Assure Holdings Corp. (the “
Company” or
“
Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of
intraoperative neuromonitoring services (“
IONM”),
announces that further to the Company’s news release on August 31,
2020, announcing its financial results for the second quarter ended
June 30, 2020 (the “
Earnings Release”), Assure
received a formal notification (the “
Notice”) from
Central Bank & Trust, a part of Farmers & Stockmens Bank
(“
Central Bank”) advising that the additional
reserves recorded by the Company against its accounts receivable
constitutes a material adverse change in the assets of Assure which
thereby triggers an event of default under the loan agreement dated
August 12, 2020, between the Company and Central Bank (the
“
Loan Agreement”). Central Bank has not made a
demand for repayment of the proceeds advanced under the Loan
Agreement.
Assure and Central Bank are currently working together to revise
certain terms of the Loan Agreement which will, among other things,
in the opinion of management, likely result in a reduction in the
borrowing base of the Company as a result of the reduced
collateral. Both parties are working in good faith to complete a
new and restructured agreement. Assure will advise the market of
any developments as they become available.
As explained in the Earnings Release, the reserves to accounts
receivable were recorded further to consultation with the auditors
of Assure because of declining revenue per procedure metrics over
the past 6 to 12 months.
The Company further announces the resignation of Scott Page
from Assure’s board of directors, effective September 4,
2020. Mr. Page is chief executive officer of Central Bank
which, as of August 12, 2020, serves as the Company’s primary bank
and lender.
“I would like to sincerely thank Scott for his tenure on the
board of Assure. His counsel and contributions on organizational
development, strategic and financial matters were instrumental in
Assure’s advancement during our last three years of rapid growth
and transformation,” said John A. Farlinger, Assure’s executive
chairman and CEO. “In the context of the new credit facility, we
have accepted Scott’s resignation out of an abundance of caution to
avoid any potential conflict of interest on his part or
Assure’s.”
Scott Page said, "It has been a pleasure to serve on Assure’s
board of directors. I am proud of the progress the
Company has made, maintain strong confidence in the management
team and am excited to watch its future success."
Mr. Page first joined Assure’s board of directors in 2018,
and had been serving as the Company’s lead independent director.
Dr. Chris Rumana will join the Audit Committee replacing Mr. Page
and Steven Summer will assume the role of Chair of the Governance,
Nomination and Compensation Committee.
At this time, the Company has decided not to fill Mr. Page’s
seat on the board.
Further to the press release dated August 13, 2020, Mr. Page
recused himself from any discussions and voting related to the
approval of the Loan Agreement by Assure.
About Assure HoldingsAssure Holdings Corp. is a
Colorado-based company that works with neurosurgeons and orthopedic
spine surgeons to provide a turnkey suite of services that support
intraoperative neuromonitoring activities during invasive
surgeries. Assure employs its own staff of technologists and uses
its own state-of-the-art monitoring equipment, handles 100% of
intraoperative neuromonitoring scheduling and setup, and bills for
all technical services provided. Assure Neuromonitoring is
recognized as providing the highest level of patient care in the
industry and has earned the Joint Commission’s Gold Seal of
Approval®. For more information, visit the company’s website
at www.assureneuromonitoring.com.
Forward-Looking StatementsThis news release may
contain “forward-looking statements” within the meaning of
applicable securities laws, including but not limited to: the
negotiation of revised terms to the Loan Agreement. Forward-looking
statements may generally be identified by the use of the words
"anticipates," "expects," "intends," "plans," "should," "could,"
"would," "may," "will," "believes," "estimates," "potential,"
"target," or "continue" and variations or similar expressions.
These statements are based upon the current expectations and
beliefs of management and are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These risks
and uncertainties include, but are not limited to: the Company’s
ability to successfully negotiate revised terms to the Loan
Agreement; the uncertainty surrounding the spread of COVID-19 and
the impact it will have on the Company’s operations and economic
activity in general; and the risks and uncertainties discussed in
our most recent annual and quarterly reports filed with the
Canadian securities regulators and available on the Company’s
profile on SEDAR at www.sedar.com, which risks and uncertainties
are incorporated herein by reference. Readers are cautioned not to
place undue reliance on forward-looking statements. Except as
required by law, Assure does not intend, and undertakes no
obligation, to update any forward-looking statements to reflect, in
particular, new information or future events.Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
ContactScott Kozak, Investor and Media
Relations Assure Holdings Corp. 1-720-287-3093
Scott.Kozak@assureiom.com
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