1. AMS was going to get ~$20 million in cash for 81% ownership of GK Financing.
2. Company will continue to pare down shares until 4.5 million are outstanding. 3. Order volumes should pick up and cash flow should increase above 2.3 million per quarter. 4. GKF has plenty of room for growth - especially in international markets. 5. The 3 pre-purchased PBRT systems could increase cash flows by 2.5 per quarter when after FDA approval and installation. Other systems purchased will find ready financing from financial partners.
I think they said $30 million in cash for the sale of GK Financing, not $20 million. Even though it didn't go through, that's a nice number for a company with a market cap of $10M.
I also thought that the comments on reimbursement rates were particularly interesting. That to me is one of the key risks to AMS since it directly affects their cash flow and all of this healthcare reform talk has been getting me a little worried.
They seem to say that in the current plan reimbursement rates would not be going down for machines placed in hospitals, which is what AMS does. They also mentioned the possibility of "package deals" which would encourage patients to get treatment at the same hospital where they were diagnosed which could increase patient volumes for AMS.