05:30 AM EDT, 03/12/2024 (MT Newswires) -- Assure Holdings ( IONM ) said Monday that it signed an agreement to sell certain assets of its IONM business, including most of its health care facility contracts and clinical equipment, to MPOWERHealth for up to $4.5 million.

The company said $2.5 million of the consideration will be paid in cash at initial closing, with the remaining $2 million as a potential earnout payment tied to case volume from the assets in the 12 months after initial closing, which is expected on or around March 22.

Assure Chief Executive John Farlinger said the asset sale gives the company "a clear pathway" to repurpose its business and complete its merger with Danam Health. The company said it will retain certain assets after the transaction, including accounts receivable and employees in the revenue cycle management team.