American Shared Hospital Services Announces $1.2 Million Private Financing
October 24 2014 - 3:28PM
Business Wire
AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS),
a leading provider of turnkey technology solutions for advanced
radiosurgical and radiation therapy services, announced today the
closing of its issuance of $1.0 million aggregate principal amount
of unsecured notes to Board of Directors members Raymond C.
Stachowiak, John F. Ruffle, Mert Ozyurek, and David A. Larson, M.D.
The notes mature in three years, and carry interest at 15%
annually. In connection with its issuance of the notes, AMS issued
to its note holders three-year warrants to purchase an aggregate of
200,000 shares at an exercise price of $2.20 per share. This
private offering is pursuant to a note and warrant purchase
agreement the parties entered into on October 22, 2014.
Additionally, AMS sold 100,000 newly issued common shares at a
purchase price of $2.20 per share to Raymond C. Stachowiak. This
private offering is pursuant to a stock purchase agreement AMS and
Mr. Stachowiak entered into on October 22, 2014.
Chairman and Chief Executive Officer Ernest A. Bates, M.D.,
said, "This $1.2 million raise is in addition to the approximately
$1.6 million equity investment made by some of our directors in
June. These investments are tangible statements of support for our
growth strategy. We have used this recent private offering together
with cash on hand, to make progress payments of $2,000,000 to
Mevion Medical Systems, Inc. for our MEVION S250 proton therapy
system to be installed at Orlando Health. The Company has also
entered into a commitment letter, subject to final documentation
and other conditions, with a major international financial
institution to provide lease financing for the completion and
installation of our proton therapy system at Orlando Health, which
is expected to start treating patients in first quarter 2016."
About AMS
American Shared Hospital Services provides turnkey technology
solutions for advanced radiosurgical and radiation therapy
services. AMS is the world leader in providing Gamma Knife
radiosurgery equipment, a non-invasive treatment for malignant and
benign brain tumors, vascular malformations and trigeminal
neuralgia (facial pain). The Company also offers the latest IGRT
and IMRT systems, as well as its proprietary Operating Room for the
21st CenturySM concept. AMS owns a common stock investment in
Mevion Medical Systems, Inc., developer of the compact MEVION S250
Proton Therapy System.
Safe Harbor Statement
This press release may be deemed to contain certain
forward-looking statements with respect to the financial condition,
results of operations and future plans of American Shared Hospital
Services, which involve risks and uncertainties including, but not
limited to, the risks of developing the proton therapy project, and
the risks of investing in a development-stage company, Mevion
Medical Systems, Inc. Further information on potential factors that
could affect the financial condition, results of operations and
future plans of American Shared Hospital Services is included in
the filings of the Company with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2013, the Form 10-Q for the quarters
ended March 31, 2014 and June 30, 2014, and the definitive Proxy
Statement for the Annual Meeting of Shareholders held on June 10,
2014.
American Shared Hospital ServicesErnest A. Bates, M.D.,
415-788-5300Chairman and Chief Executive Officereabates@ashs.comorBerkman AssociatesNeil
Berkman, 310-477-3118Presidentinfo@berkmanassociates.com
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