Assure Holdings Appoints Sean Blosser as Vice President of Revenue Cycle Management
Company Closes Fourth Tranche of Convertible Debenture Unit Offering and Provides Update on Reporting Fourth Quarter and Full Year 2019 Results
DENVER, April 09, 2020 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (TSXV: IOM; OTCQB: ARHH), a provider of intraoperative neuromonitoring services (“IONM”), has appointed Sean Blosser to the newly created position of vice president of revenue cycle management (RCM).
As a key member of Assure’s leadership team, Blosser will oversee expedient billing, accounts receivable operations, and the implementation of scalable processes to increase efficiency, quality and success. Blosser’s work will also align with Assure’s vice president of strategy Paul Webster, who will now focus on payer strategy and developing an in-network revenue stream by securing agreements with commercial insurance providers. In addition, Blosser will lead Assure’s in-house billing and collections team to create a data-driven environment, set goals and implement strategies that ensure revenue and cash collection expectations are met.
“Sean is a seasoned professional and results-oriented leader, making him a great fit for Assure’s management team. His primary objectives will include accelerating the Company’s cash collections, lowering accounts receivable and reducing days sales outstanding,” said John A. Farlinger, Assure’s executive chairman and CEO. “In addition, Sean’s extensive ground-up leadership experience in RCM, information technology, out-of-network billing, acquisition integration, coding and training is a great fit for our organization as we continue to grow rapidly and expand geographically. His track record of success and deep skill set position him to navigate and optimize the Company’s billing and collections function in a dynamic and ever-changing healthcare revenue cycle business.”
On his appointment, Blosser commented, “I’m very excited to join the Assure team and implement best practice revenue cycle methodologies to drive results for the organization. I am looking forward to supporting the Company as it enters its next phase of growth.”
With an emphasis on process improvement, analytics and RCM turnarounds, Blosser has previously served as a financial leader at multiple healthcare organizations for both publicly traded and private equity portfolio companies. Before joining Assure, Blosser served as Vice President, Revenue Cycle Management with Option Care Health, where he was responsible for RCM functions at BioScrip Pharmacy, overseeing $780M in annual revenue and managing more than 400 team members while driving substantial improvements in collections, bad debt and billing processes.
Blosser earned a Master of Business Administration and Bachelor of Arts from the University of Colorado Denver.
Concurrent with his appointment, Blosser will receive 200,000 common stock options in accordance with the terms of the Company’s existing stock option plan (the “Options”). The Options are subject to the approval of the TSX Venture Exchange and applicable hold periods.
Update on Fourth Quarter and Full Year 2019 Earnings Results
Assure was prepared for its audit and progressing as expected to meet the April 29, 2020, filing deadline for reporting fourth quarter and full year 2019 results. However, factors driven by the COVID-19 pandemic, including the inability of auditors to travel and the limited availability of certain employees ciritcal to the process due to quarantine, are contributing to delays and impacting the Company’s ability to meet this deadline.
Similar to other companies navigating this situation, Assure is evaluating whether it will utilize the temporary relief extension periods from certain regulatory filings required to be made on or before June 1, 2020, that have been offered by the Canadian Securities Administrators (CSA) and U.S. Securities and Exchange Commission (SEC).
Assure is resolutely continuing its process for completing its audit with the goal of reporting results by April 29, 2020. As soon as the Company has greater clarity on its progress towards the objective, a final decision on the timing for reporting fourth quarter and full year 2019 results will be provided.
Closing Fourth Tranche of Convertible Debenture Unit Offering
The Company has closed the fourth tranche (the “Fourth Tranche Closing”) of its previously announced non-brokered private placement offering of up to US$4 million (the “Offering”) units of the Company (each a “Unit” and collectively, the “Units”), issuing 300 Units for gross proceeds of US$300,000. Each Unit is comprised of one unsecured redeemable convertible debenture (the “Debentures”), each with a principal amount of US$1,000 and 357 share purchase warrants (the “Warrants”). To date, the Company issued 2,620 Units for gross proceeds of US$2,620,000 (the “Offering”). The net proceeds of the Offering will be used for general corporate and working capital purposes.
In connection with the Offering, the Company paid finders a cash commission equal to 7% of the gross proceeds raised by the applicable finder and such number of finders warrants (each a “Finders Warrant” and collectively, the “Finders Warrants”) equal to 7% of the aggregate number of Common Shares issuable upon conversion of the Debentures issued as a direct result of introductions from such finders. In connection with the Fourth Tranche Closing, the Company paid an aggregate of US$17,500 and issued an aggregate of 12,500 Finders Warrants.
On December 13, 2020, the Company closed the first tranche of the Offering by issuing an aggregate of 965 Units and 48,250 Finders Warrants. On January 17, 2020, the Company closed the second tranche of the Offering by issuing an aggregate of 470 Units and 22,000 Finders Warrants. On February 4, 2020, the Company closed the third tranche of the Offering by issuing an aggregate of 886 Units and 21,800 Finders Warrants.
For further details concerning the Offering, please refer to the Company’s news releases dated February 5, 2020, January 20, 2020, January 6, 2020, December 16, 2019, and November 22, 2019.
All securities issued pursuant to the Offering and all securities issued upon exercise thereof will be subject to a hold period of twelve months following the date of issuance thereof, in accordance with the policies of the TSX Venture Exchange (the “TSXV”) and applicable Canadian and U.S. securities laws. The Offering is subject to final approval of the TSXV.
This press release is not an offer of the securities for sale in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation, or sale would be unlawful.
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, handles 100% of intraoperative neuromonitoring scheduling and setup, and bills for all technical services provided. Assure Neuromonitoring is recognized as providing the highest level of patient care in the industry and has earned the Joint Commission’s Gold Seal of Approval®. For more information, visit the company’s website at www.assureneuromonitoring.com.
This news 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, which address activities, events, outcomes, results, developments, performance or achievements that Assure anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information and forward-looking statements. Such information or statements may include, but is not limited to, comments with respect to strategies; expectations; planned operations; future actions of the Company; that the overhaul of the Company’s revenue cycle management process will be successful or result in more timely or accurate claims filings; that the Company will make its revenue collection cycle shorter or more efficient; that the Company will continue to expand its platform through organic growth or geographic expansion; that the Company will complete its fourth quarter audit and be able to meet the reporting requirements by April 30, 2020; the offering of Debentures and Warrants and the details thereof, including the proposed use of proceeds therefrom, and other expected effects of the Offering and that granting of the Options will be approved by the TSXV. Often, but not always, forward-looking information or forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information and forward-looking statements are based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Assure to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information and the forward-looking statements. Material risk factors include: future capital requirements; growing competition in the IONM industry; reliance on strategic partnerships with both surgeons and national insurance providers within the jurisdictions in which the Company operates; the TSXV may not approve the Options; the Company may not complete its fourth quarter audit and may not be able to meet the reporting requirements by April 30, 2020; the Company’s ability to complete a further tranche of the Offering; final approval from the TSXV for the Offering may not be granted and the uncertainty surrounding the spread of the COVID-19 virus and the impact it will have on the Company’s operations, and economic activity in general. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements in this news release speak only as of the date of this release and Assure undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release. Any and 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 and Media Relations
Assure Holdings Corp.
Released April 9, 2020