Assure Holdings Corp. (NASDAQ: IONM) stock soared over 23% on Tuesday following an agreement to sell assets to MPOWERHealth.
Assure Holdings has agreed to sell specific assets from its intraoperative neuromonitoring (IONM) division to MPOWERHealth for a potential sum of $4.5 million. The arrangement includes an initial payment of $2.5 million in cash, with an additional $2.0 million contingent upon case volume in the year following the initial closing.
The assets involved in the deal include healthcare facility contracts, clinical equipment, and the transfer of most of Assure’s workforce. However, Assure will retain certain assets, such as accounts receivable and employees engaged in revenue cycle management.
The completion of the initial transaction, slated for around March 22, 2024, remains subject to customary conditions.
John Farlinger, Assure’s executive chairman and CEO, commented,
“The sale of IONM assets to MPOWER provides Assure with a clear pathway to meet its strategic objective of repurposing our business and closing our merger with Danam Health. We are pleased that MPOWER will continue providing our surgeon partners with the high-quality IONM services they are accustomed to receiving using the same neurophysiologists they work with today.”
Scott LaRoque, CEO of MPOWERHealth, commented,
“MPOWERHealth’s acquisition of Assure Neuromonitoring further solidifies our standing as a leading provider of IONM services. This move underscores our commitment to advancing surgical safety and patient outcomes through improved access to advanced technologies. We’re excited about the positive impact this acquisition will bring to patient care and look forward to furthering the clinical excellence within our field.”
Assure Holdings (NASDAQ: IONM) Stock Performance
IONM stock surged 23.17% to close at $0.42 on Tuesday. The traders had exchanged hands with 40,367,680 (40.36 million) shares compared to the average daily trading volume of 793.62K.
