AMERICAN SHARED HOSPITAL SERVICES Enters Material Agreement, New Obligation

TL;DR

**ASHA just took on a new material agreement and financial obligation, watch for details.**

AI Summary

AMERICAN SHARED HOSPITAL SERVICES filed an 8-K on January 31, 2024, reporting an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation" on January 25, 2024. This indicates the company has entered into a significant new contract or loan, which could impact its financial health and future operations. For investors, this matters because new material agreements or financial obligations can significantly alter a company's revenue streams, expenses, or debt load, directly affecting its profitability and stock valuation.

Why It Matters

This filing signals a potentially significant change in AMERICAN SHARED HOSPITAL SERVICES' financial structure or business operations, which could lead to increased revenue, new liabilities, or strategic shifts affecting its stock price.

Risk Assessment

Risk Level: medium — The filing indicates a new material agreement and financial obligation without providing specific details, creating uncertainty about the nature and impact of these commitments.

Analyst Insight

A smart investor would monitor subsequent filings or press releases from AMERICAN SHARED HOSPITAL SERVICES for specific details regarding the material definitive agreement and the direct financial obligation, as these will determine the actual impact on the company's financial health and future prospects.

Key Players & Entities

• AMERICAN SHARED HOSPITAL SERVICES (company) — the registrant filing the 8-K
• January 25, 2024 (date) — date of the earliest event reported
• January 31, 2024 (date) — date the 8-K was filed
• 601 Montgomery Street, Suite 1112 San Francisco, California 94111 (company) — business address of the registrant
• 415-788-5300 (dollar_amount) — registrant's telephone number

Forward-Looking Statements

• AMERICAN SHARED HOSPITAL SERVICES will provide further details on the material agreement and financial obligation in a subsequent filing or earnings call. (AMERICAN SHARED HOSPITAL SERVICES) — high confidence, target: Q1 2024 Earnings Report
• The new financial obligation will impact the company's debt-to-equity ratio. (AMERICAN SHARED HOSPITAL SERVICES) — medium confidence, target: Next Quarterly Report

FAQ

Key Financial Figures

• $2.7 million — an in the aggregate principal amount of $2.7 million (the "Supplemental Term Loan"). The pro
• $9,450 — is subject to a loan origination fee of $9,450. There are no prepayment fees associate

Filing Documents

• asha20240130_8k.htm (8-K) — 28KB
• ex_621322.htm (EX-10.1) — 732KB
• 0001437749-24-002708.txt ( ) — 1036KB
• ams-20240125.xsd (EX-101.SCH) — 3KB
• ams-20240125_def.xml (EX-101.DEF) — 11KB
• ams-20240125_lab.xml (EX-101.LAB) — 15KB
• ams-20240125_pre.xml (EX-101.PRE) — 11KB
• asha20240130_8k_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 25, 2024 (the "First Amendment Effective Date"), American Shared Hospital Services (the "Company"), along with certain of its domestic subsidiaries, entered into a First Amendment to Credit Agreement (the "First Amendment") with Fifth Third Bank, National Association (the "Lender"), amending that certain Credit Agreement dated April 9, 2021 by and among the Company, certain of its domestic subsidiaries and the Lender (the "Credit Agreement"). The First Amendment added a new term loan in the aggregate principal amount of $2.7 million (the "Supplemental Term Loan"). The proceeds of the Supplemental Term Loan were advanced in a single borrowing, funded on the First Amendment Effective Date, and will be used for capital expenditures related to the Company's operations in Puebla, Mexico and other related transaction costs. The Supplemental Term Loan will mature on January 25, 2030 (the "Maturity Date'). Interest on the Supplemental Term Loan is payable monthly during the initial twelve month period following the First Amendment Effective Date. Following such twelve month period, the Company is required to make equal monthly payments of principal and interest to fully amortize the amount outstanding under the Supplemental Term Loan by the Maturity Date. The Supplemental Term Loan is subject to a loan origination fee of $9,450. There are no prepayment fees associated with the Supplemental Term Loan. The Supplemental Term Loan is secured by a lien on substantially all of the assets of the Company and certain of its domestic subsidiaries. The First Amendment also replaces the LIBOR-based rates in the Credit Agreement with SOFR-based rates. Pursuant to the First Amendment, advances under the Credit Agreement bear interest at a floating rate per annum equal to SOFR plus 3.00%, subject to a SOFR floor of 0.00%. The First Amendment modifies certain reporting requirements, covenants, representations, certifica

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 First Amendment to Credit Agreement dated as of January 25, 2024 by and among American Shared Hospital Services, PBRT Orlando, LLC, and GK Financing, LLC as co-borrowers, American Shared Radiosurgery Services as a loan party, and Fifth Third Bank, National Association, as Lender. 104 Cover page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN SHARED HOSPITAL SERVICES (Registrant) Dated: January 31, 2024 /s/ Raymond C. Stachowiak By: Raymond C. Stachowiak Title: Executive Chairman of the Board

View Full Filing

View this 8-K filing on SEC EDGAR