Assure Strengthens Balance Sheet and Finances Expansion Efforts with Closing of $6.5 Million Loan Facility

New Agreement Includes $4.0 Million Term Loan and $2.5 Million Line of Credit

DENVER, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of intraoperative neuromonitoring services, announced it has signed a new $4.0 million term loan (the “Term Loan”) and a $2.5 million operating line of credit (the “Operating Line” and together with the Term Loan, the “Loan Facility”), for a total of $6.5 million with Colorado based, Central Bank & Trust, a part of Farmers & Stockmens Bank. The Loan Facility will be used to replace the Company’s current $3.0 million facility with Bank of Oklahoma.

“Closing on this attractive new credit facility is a milestone for Assure and a testament to the substantial progress we have made expanding our platform and improving our cash collections. The agreement provides the Company with additional financial flexibility at far lower borrowing costs than alternate options typically available to emerging growth companies,” said John A. Farlinger, Assure’s executive chairman and CEO. “We are pleased to strengthen our balance sheet given the uncertainties associated with the global pandemic and also to access the capital necessary to support our business as we accelerate our next phase of growth.”

Under the conditions of the agreement governing the Loan Facility (the “Loan Agreement”), the Term Loan bears interest at the Wall Street Journal prime rate (“WSJ”) plus 2.0% and matures on August 12, 2024. Commencing on September 1, 2020, interest on the Term Loan is payable on the first calendar day of each month until May 1, 2021. Commencing on August 1, 2021, principal payments in the amount of US$307,695, together with interest, shall be made quarterly until maturity. In addition, the Operating Line bears interest at a rate of WSJ plus 2.0% and matures on August 12, 2022. Commencing on September 1, 2020, the Operating Line is repayable, together with interest, on the first calendar day of each month until maturity. The use of proceeds from both facilities will be utilized to repay certain outstanding indebtedness, for working capital and general corporate purposes and funding the Company’s expansion plans. Assure did not issue any shares, warrants, or options in connection with this transaction.