Assure Holdings Corp. Closes $6.2 Million Underwritten Public Offering of Common Stock

Rhea-AI Summary

Assure Holdings Corp. (NASDAQ: IONM) has successfully closed an underwritten public offering, generating approximately $6.2 million in gross proceeds by selling 5,576,087 shares at $1.12 per share. The funds will be used for general corporate purposes, including debt repayment and increasing working capital. Additionally, the underwriter has a 45-day option to buy more shares, potentially raising total proceeds to $7.2 million. This offering follows an effective shelf registration statement declared on August 17, 2022.

Positive

• Gross proceeds of $6.2 million from the public offering.
• Funds will be allocated to corporate purposes, including debt repayment.

Negative

• Potential dilution for existing shareholders due to the new share issuance.

DENVER, Aug. 24, 2022 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (NASDAQ: IONM) ("Assure Holdings" or the "Company"), a provider of intraoperative neuromonitoring (“IONM”) and remote neurology services, announced the closing of an underwritten public offering with gross proceeds to the Company of approximately $6.2 million, before deducting underwriting discounts and other estimated expenses payable by the Company. The offering equates to 5,576,087 shares at a price to the public of $1.12 per share. The Company intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, repayment of indebtedness and increasing working capital expenditures.

In addition, the Company granted the underwriter a 45-day option to purchase additional shares of common stock, representing up to 15% of the number of the shares offered in the base deal, solely to cover over-allotments, if any, which would increase the total gross proceeds of the offering to approximately $7.2 million, if the over-allotment option is exercised in full.

Aegis Capital Corp. is acting as the sole book-running manager for the offering

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333-266730) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on August 17, 2022. A final prospectus supplement and accompanying prospectus (collectively, the "Prospectus") describing the terms of the proposed offering was filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the Prospectus may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sales of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Assure Holdings
Assure Holdings Corp. is a provider of outsourced intraoperative neuromonitoring and remote neurology services. The Company delivers a turnkey suite of clinical and operational services to support surgeons and medical facilities during invasive procedures that place the nervous system at risk including neurosurgery, spine, cardiovascular, orthopedic and ear, nose and throat surgeries. Assure Holdings employs highly trained technologists that provide a direct point of contact in the operating room. Physicians employed through Assure Holdings subsidiaries simultaneously monitor the functional integrity of patients’ neural structures throughout the procedure communicating in real-time with the surgeon and technologist. Accredited by The Joint Commission, Assure Holdings’ mission is to provide exceptional surgical care and a positive patient experience.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

Contact
Scott Kozak, Investor and Media Relations
Assure Holdings Corp.
(720) 617-2526
Scott.Kozak@assureiom.com

FAQ

What are the details of the Assure Holdings public offering?

Assure Holdings closed a public offering of 5,576,087 shares at a price of $1.12 per share, generating approximately $6.2 million in gross proceeds.

How will Assure Holdings use the proceeds from the offering?

The proceeds will be used for general corporate purposes, including repayment of debt and increasing working capital expenditures.

What is the total potential gross proceeds from the offering?

If the underwriter exercises its 45-day option to purchase additional shares, total gross proceeds could reach approximately $7.2 million.

What risks are associated with the new share issuance for Assure Holdings?

The new share issuance may lead to dilution of existing shareholders' equity.