DENVER - Assure Holdings Corp. (NASDAQ:IONM), a provider of intraoperative neuromonitoring services, has announced a definitive agreement to merge with Danam Health, Inc. in a stock-for-stock transaction. Following the merger, Danam will become a wholly-owned subsidiary of Assure, and the company will be renamed Danam Health Holdings Corp.
The deal is structured such that Danam stockholders will exchange their equity securities for shares of Assure common stock. Upon completion, Danam stockholders are expected to own approximately 90% of the combined entity, with Assure stockholders owning around 10%, subject to adjustments. The combined company is valued at approximately $150 million on a fully diluted basis.
This merger is anticipated to close in the second quarter of 2024, contingent upon certain conditions. These include the completion of specific acquisitions by Danam, a sale of assets by Assure, shareholder approvals from both companies, and the listing of the combined company on Nasdaq.
Suren Ajjarapu, Chairman of Danam Health, will serve as Chairman of the new entity, which aims to advance a micro health ecosystem focusing on pharmaceutical and healthcare services. The combined portfolio will include pharmacy, wholesale operations, and a technology division offering a platform for hub and clinical services.
Both companies' boards of directors have unanimously approved the merger agreement. Joseph Gunnar & Co., LLC is the exclusive financial advisor, while Dorsey & Whitney LLP and Dykema Gossett PLLC are providing legal counsel to Assure and Danam, respectively.
The proposed merger is expected to enhance patient-centric healthcare solutions, with Danam's innovative applications aiming to improve patient care and cost savings on pharmaceutical products. The integration is intended to address access, care coordination, dispensing, delivery, and clinical management of pharmaceutical products.
The information in this article is based on a press release statement from Assure Holdings Corp.
InvestingPro Insights
As Assure Holdings Corp. (NASDAQ:IONM) prepares for its merger with Danam Health, Inc., investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Assure Holdings Corp. is currently operating with a market capitalization of approximately 1.45 million USD. However, the company's financials reflect some challenges, with a negative gross profit margin of -41.81% over the last twelve months as of Q3 2023. This underlines the company's struggles with profitability, as reflected in its negative P/E ratio of -0.06 for the same period.
In terms of stock performance, Assure has experienced a significant return over the last week, with a 1-week price total return of 8.89%. Despite this short-term gain, the stock has witnessed a steep decline over the past year, with a 1-year price total return of -95.32%, indicating a substantial decrease in investor confidence. This is further corroborated by the fact that the stock price is currently at only 3.19% of its 52-week high.
InvestingPro Tips highlight that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable within the same timeframe. Moreover, Assure Holdings operates with a significant debt burden and is quickly burning through cash, which could be concerning for potential investors. For those interested in a deeper dive into Assure's financials and market prospects, InvestingPro offers additional tips, with a total of 14 tips available for Assure Holdings Corp. at https://www.investing.com/pro/IONM. To gain access to these insights and more, consider using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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