Assure Holdings Signs Letter of Intent to Purchase Certain Assets of Innovation Neuromonitoring, LLC

Expects to Increase Annual Number of Cases by More than 3,000

DENVER, June 26, 2023 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (NASDAQ: IONM), a provider of intraoperative neuromonitoring (“IONM”) and remote neurology services, today announced that it has signed a Letter of Intent (“LOI”) to purchase certain assets of Innovation Neuromonitoring, LLC (“Innovation”) for approximately $1.2 million in a cash and equity transaction.

Established in 2016, Innovation is a leading IONM company primarily serving the Greater Dallas, Texas and Charleston, South Carolina regions. In 2022, Innovation performed more than 4,000 IONM procedures and approximately 51% of these procedures were with commercial insurance payors. The company currently employs 18 full-time staff, including 13 technologists supporting more than 50 surgeons at over 40 facilities.

John Farlinger, Assure’s executive chairman and CEO, commented, “The purchase of assets from Innovation is a strong strategic fit with our existing business in Texas and provides us with the opportunity to scale our operations rapidly. Innovation believes that they will service more than 3,000 surgeries this year. It will add density in the state of Texas, our largest market and it also extends our geographic footprint to South Carolina. Importantly, we are deploying capital in a manner that we believe will increase value for our current shareholders and help us move towards delivering positive cash from operations more quickly.” Farlinger concluded, “Accredited by The Joint Commission, Innovation’s commitment to providing superior IONM services aligns with Assure’s core values.”

“We are excited at the opportunity to join the Assure team given our shared core values of providing exceptional service to surgeons and care for patients,” Anthony Casarez, Innovation Founder commented. “We are proud of the business we have built, and I believe the resources and expertise Assure provides will provide stability to our surgeon partners and opportunities for our employees, all while driving top and bottom-line growth.”

The purchase price to be paid is $800,000 in cash and $400,000 in Assure common stock, subject to escrow and other requirements. Under the LOI, Assure will acquire Innovation’s contracts, employees, business relationships, equipment and other assets. Approximately $500,000 of the $800,000 cash will be paid over 24 monthly installments, with adjustments based on the number of surgeries and the commercial payor mix. The proposed Acquisition will take the form of either an asset or equity purchase by Assure at its choice at closing.