Regional Health Properties and SunLink postpone merger meetings until Monday

On Tuesday, Regional Health Properties and SunLink Health Systems announced that they are adjourning their special meetings where stockholders were asked to vote on a proposed merger. The meetings are set to reconvene on Monday.

In a filing with the Securities and Exchange Commission, Regional Health Properties reported that their stockholders have approved the adjournment of the special meeting to gather additional votes for the merger. As of Tuesday, there were 1,043,581 votes in favor of the merger, 298,162 against, and 13,382 abstentions.

SunLink also mentioned that the merger has garnered support from the majority of votes cast so far but emphasized that the transaction necessitates the approval of a majority of the outstanding Common Stock shares eligible for voting at the Special Meeting.

Regional Health Properties believes that the merger will have a positive impact on the financial standing of both companies. SunLink CEO Robert M. Thornton Jr. expressed excitement about the merger, stating that it brings anticipated benefits and opportunities to the stockholders in the combined entity.

In a recent press release, Regional Health Properties acknowledged opposition to the merger from shareholders Ken Grossman and Charlie Frischer. They stated that these shareholders did not have the best interests of Regional common shareholders in mind, noting that they own more Series B preferred stock than common stock.

Should the merger be approved, SunLink will merge into Regional Health Properties, with its shareholders owning approximately 43% of the combined company, as per an SEC filing from January 3.

Regional Health Properties currently owns a portfolio of 12 senior living and care properties in five states.

The decision to adjourn the meetings reflects the importance of gathering additional support and votes to ensure the success of the proposed merger between Regional Health Properties and SunLink Health Systems. Both companies remain optimistic about the potential benefits and opportunities that the merger would bring to their respective stockholders and the combined entity. It is crucial for the shareholders to come to a consensus on the transaction to move forward with the integration of the two companies and the realization of their shared goals and objectives.