Assure Holdings Announces Update to Credit Facility

Scott Page Departing from Board of Directors

DENVER, Sept. 08, 2020 (GLOBE NEWSWIRE) -- 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.”