American Shared Hospital Services executed two financing actions to stabilize liquidity and address prior covenant defaults. The company entered a Third Amendment and Forbearance Agreement with Fifth Third Bank that runs through June 30, 2027, suspending certain covenants, restricting new revolver draws, and requiring interest-only payments with quarterly principal payments beginning October 10, 2026, plus excess cash flow prepayments above $5 million and an asset sale process. Separately, the company raised $2.0 million via a subordinated secured note at 10% from RCS/TIG Holdings, accompanied by warrants for up to 220,000 shares at $1.45; proceeds were placed in a lender-controlled blocked account as required by the senior facility.
Agreement 1: American Shared Hospital Services Wins Forbearance to 2027 in Third Credit Amendment With Fifth Third
- Agreement type: Third Amendment to Credit Agreement and Forbearance Agreement
- Counterparty: Fifth Third Bank
- Signed / Effective: Jul 22 2026 / Jul 22 2026
- Duration / Termination: Through Jun 30 2027 (Standstill Period)
- Reason: Stabilize liquidity and manage defaults while pursuing asset sale
Agreement 2: American Shared Hospital Services Raises $2M Subordinated Note at 10% and Issues Warrants
- Agreement type: Subordinated secured promissory note with warrant coverage
- Counterparty: RCS/TIG Holdings
- Signed / Effective: Jul 22 2026 / Jul 22 2026
- Duration / Termination: Through Jul 21 2027
- Reason: Provide blocked cash to support forbearance and liquidity
Original SEC Filing:
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