Assure Holdings Announces Acquisition of NervePro
DENVER, January 6, 2023 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (NASDAQ: IONM), a provider of intraoperative neuromonitoring (“IONM”) and remote neurology services, is pleased to announce that on December 31, 2022, it completed the acquisition (the “Acquisition”) of substantially all of the assets of Neuroprotect Neuromonitoring, LLC, and certain of its affiliated entities (collectively, “NervePro”), a Colorado-based IONM service provider owned by J. Paul Elliott, M.D. of the Colorado Brain & Spine Institute (“CBSI”). Assure acquired specifically, accounts receivable for services after December 1, 2022, as well as NervePro’s material contracts, business relationships and other tangible assets.
NervePro’s operations are based in the Denver-metro area of Colorado. In 2022, NervePro performed approximately 750 IONM managed cases covered by commercial insurance payors and employed three technologists supporting five surgeons at seven facilities.
John A. Farlinger, Assure’s executive chairman and CEO, said, “The Acquisition is consistent with our strategic plan to become a consolidator in the IONM industry, seeking targets with operations in states like Colorado where we have an existing presence in order to leverage our current employee footprint and revenue cycle management competency. “This Acquisition is expected to improve our financial position. Further, we intend to improve on NervePro’s historic per procedure revenue in 2023 and beyond.”
Farlinger continued, “We expect to continue to be opportunistic and active in this M&A environment. Assure is seeking to identify additional IONM assets that we believe we can make more valuable on our platform, leveraging our strength in revenue cycle management and other functional areas. We are pleased to provide the Assure shareholders with an opportunity to benefit from what we believe will be an accretive transaction.”
Dr. J. Paul Elliott is the President and CEO of CBSI and a board-certified neurosurgeon specializing in cranial, spine, and peripheral nerve procedures. He is a graduate of Stanford University and Columbia University Vagelos College of Physicians and Surgeons.
Dr. Elliott commented, “We sought out Assure because we share a commitment to clinical excellence and delivering improved patient outcomes. I value Assure’s emphasis on measurement, reporting and clinical quality improvement to meet the goals prioritized by the surgeons and hospitals with whom they work.”
Pursuant to the acquisition, and as consideration for the acquired assets, Assure issued to NervePro 1,500,000 shares of common stock of the Company (the “Common Shares”) at a deemed price of $0.26 per share based on closing price on December 30, 2022, and agreed to use its best efforts to register such Common Shares for resale with the Securities and Exchange Commission under the Securities Act of 1933, as amended, on or prior to January 31, 2023.
