DENVER, March 5, 2021 (GLOBE NEWSWIRE) – Assure Holdings Corp. (the “Company” or “Ensure“) (TSXV: IOM; OTCQB: ARHH), a provider of intraoperative neuromonitoring services (“IONM“), Is pleased to announce that she has received a loan (“Ready“) Under the United States Small Business Administration (“SBA “) Paycheck Protection Program Second Draw Loans under the Small Business Act, Paycheck Protection Program (“PPP “), implemented in accordance with the Coronavirus Aid, Relief and Economic Security Act.
On March 2, 2021, Assure signed a PPP promissory note and received an unsecured PPP loan of $ 1,664,700, which matures on February 25, 2026 (the “Ready”). The loan bears interest at a rate of 1.0% per annum, with principal and interest due on the first day of each month, with payments commencing on the earliest of the following dates: (i) the day the amount of the discount loan granted to Assure is remitted by the SBA to the Bank of Oklahoma; and (ii) ten (10) months after the end of the twenty-four (24) week period following the granting of the Loan. All or part of the loan may be canceled if the Company maintains its employment and compensation within certain parameters for the period of twenty-four (24) weeks from the date of granting the loan and the loan proceeds are spent on personnel costs, rent or rental contracts dated before February 15, 2020 and utility payments arising from service contracts dated before February 15, 2020.
“We are grateful to the SBA and the US Federal Government for the support it has provided amid the COVID-19 pandemic,” said John A. Farlinger, Executive Chairman and CEO of Assure. “We want to protect our talented team while seizing the expansion opportunities that emerge in the IONM industry.”
As a small U.S. business, Assure qualifies for the PPP which allows businesses and nonprofits with fewer than 500 employees to obtain loans of up to $ 10 million to incent businesses to retain workers. as they manage the business disruption caused by the COVID-19 pandemic.
Ensures retains investor engagement and marketing support
Assure has entered into an agreement with each of the Contact Financial Corp. (“Contact“) And Kanan Corbin Schupak & Aronow, Inc. d / b / a KCSA Strategic Communications (“KCSA“) (Respectively, the”Contact Agreement” and the “KCSA Agreement”) To help the company develop and execute a comprehensive strategic communications program. Contact and KCSA’s services will respectively include providing advice to the Company with respect to business development, production and distribution of investor-focused communications tools, and increasing the Company’s awareness of within the financial community.
Contact is a broad-based, strategic communications and marketing firm with experience in obtaining increased market exposure for small to mid-cap growth companies. Contact, led by Kirk Gamley, is based in Vancouver. Since 1969, New York-based KCSA has provided public and private enterprise clients with investor targeting and outreach, public relations, and digital media capabilities.
In accordance with the terms of the contact contract, Contact was retained for an initial period of six (6) months (the “Contact Initial term»), The parties having the possibility to extend the duration of the contact contract on a monthly basis thereafter. During the Initial Contact Term and each month following the Initial Contact Term, provided the term of the Contact Agreement is extended, Contact will receive a monthly fee of CAN $ 8,000 (plus GST). Contact was also granted options to purchase a maximum of 200,000 common shares of the Company (collectively, the “Options“), Exercisable for 3 years at a price of US $ 1.36 per share, with vesting restrictions in accordance with the TSX Venture Exchange (“TSXV“) Strategies.
In accordance with the terms of the KCSA Agreement, KCSA was retained for an initial period of six (6) months (the “KCSA Initial termsThe Agreement will automatically renew monthly thereafter, unless terminated by either party upon thirty (30) days written notice. During the Initial Term of KCSA and each month following the Initial Term of KCSA, KCSA will receive a monthly fee of $ 8,500 (plus GST).
To the best of the Company’s knowledge, with the exception of Options, neither KCSA nor Contact has any current intention of directly or indirectly acquiring Company securities. KCSA and Contact deal at arm’s length with Assure and have no other relationship with the Company, except under the KCSA Agreement and the Contact Agreement respectively.
The KCSA agreement, the contact agreement and the issuance of options remain subject to the approval of the TSXV.
About Assure Holdings
Assure 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, manages 100% of the planning and configuration of intraoperative neuromonitoring, and invoices all technical services provided. Assure Neuromonitoring is recognized as providing the highest standard of patient care in the industry and has been awarded the Gold Seal of the Joint Commission of Approval®. For more information, visit the company’s website at www.assureneuromonitoring.com.
This press release contains certain statements that may constitute forward-looking information and forward-looking statements under applicable securities laws. All statements, other than those of historical fact, that deal with the activities, events, results, results, developments, performance or achievements that Assure foresees or expects to occur or to occur. will produce in the future (in whole or in part) should be considered as prospective. forward-looking information and statements. Such information or statements may include, but is not limited to, comments regarding: strategies; expectations; planned operations; future actions of the company; whether to use the proceeds of the PPP loan in such a way that the loan can be canceled, receive a discount under the PPP program or enter into the contact agreement and the KCSA agreement will be successful for the company; the company’s reputation in the IONM industry; that the Company will obtain TSXV approval of the terms of the contact and KCSA contracts and the grant of options. Often, but not always, forward-looking information or statements can be identified by the use of words indicating expectations, plans, forecasts, assumptions and events that may occur, be realized or materialize. Forward-looking information and forward-looking statements are based on competitive, financial and economic data and operating plans, strategies or beliefs currently available as of the date of this press release, but involve risks, uncertainties, assumptions and other known factors. and unknown. may cause Assure’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by forward-looking information and forward-looking statements. Important risk factors include: increasing competition in the IONM industry; the PPP loan cannot be canceled; Contact and KCSA may not be successful in providing the Company with a comprehensive strategic communications program; TSXV may not approve the terms of the KCSA Agreement or Contact Agreement; TSXV may not approve the issuance of options; the Company may not continue to be a leading provider of outsourced intraoperative neurophysiological monitoring; the Company cannot expand its activities; the uncertainty surrounding the spread of COVID-19 and its impact on the Company’s operations and economic activity in general; that the measures taken by the Company during the COVID-19 health crisis will be effective; and the risks and uncertainties discussed in the company’s registration statement and in our most recent annual and quarterly reports filed with Canadian securities regulators and available on the company’s profile on SEDAR at www.sedar.com, the risks and uncertainties of which are incorporated here by reference. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that any plans, intentions or expectations upon which they are placed will materialize. This information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those expected. The forward-looking statements contained in this press release speak only as of the date of this press release, and Assure disclaims any obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this press release. All forward-looking information contained in this press release is expressly qualified by this cautionary statement.
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.
Scott Kozak, Investor Relations and Media
Assure Holdings Corp.