[October 24, 2014] |
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American Shared Hospital Services Announces $1.2 Million Private Financing
SAN FRANCISCO --(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 mae 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.
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