American Shared Hospital Services Announces Closing of Acquisition of 60% Majority Interest in Three Radiation Therapy Cancer Centers in Rhode Island

- Adds $9-$10 million in Annual Revenue with Positive Net Income Contribution -

- Acquisition more than Doubles Backlog to over $210 million -

- Expands U.S. Footprint and Product Offering -

SAN FRANCISCO, May 09, 2024 (GLOBE NEWSWIRE) -- American Shared Hospital Services (NYSE American: AMS) (the "Company"), a leading provider of turnkey technology solutions for stereotactic radiosurgery and advanced radiation therapy cancer treatment systems and services, today announced the closing of its acquisition of a 60% majority equity interest in the Southern New England Regional Cancer Center, LLC and Roger Williams Radiation Therapy, LLC, both Rhode Island limited liability corporations (the “Companies”) as well as certain payor contracts, from the Chapter 11 Bankruptcy Estate of GenesisCare USA, Inc., a Florida corporation, for a purchase price of $2.85 million.

The Company anticipates this transaction to add $9-$10 million in annual revenue with positive net income contribution. Additionally, the Company announced that its projected revenue backlog has more than doubled to over $210 million with this acquisition.

American Shared estimates that our projected revenue backlog has increased significantly, from $106 million in 2021 to an estimated $213 million in May 2024. Our retail centers are a key factor in this projection, including our acquisition of a 60 percent interest in three Rhode Island radiation therapy cancer centers, along with our current 100 percent ownership of two international facilities in Peru and Ecuador and 85 percent ownership of a third in Mexico. Because the Rhode Island and international agreements have no termination date, we anticipate these centers will generate revenues for at least the next ten years.

The Companies operate three fully functional turn-key radiation therapy cancer centers in Rhode Island, and all three sites are equipped with state-of-the-art cancer treatment technology using Linear Accelerators (LINACs) along with CT Simulators and comprehensive treatment planning software for tumor localization. The Investment interests that were acquired are for facilities that reside on or adjacent to Care New England and Roger Williams Medical Center which are the second and third largest health systems in the State of Rhode Island and are equity members of the subject facilities. The facilities include the Southern New England Regional Cancer Center LLC in Woonsocket, RI and Southern New England Radiation Therapy LLC-Kent in Warwick, RI. The third facility Roger Williams Radiation Therapy LLC is in Providence, RI.