clearn.png
Friday April 3rd, 2020 7:18AM

SunLink Health Systems, Inc. Announces Suspension of Share Repurchase Program

By The Associated Press

ATLANTA--(BUSINESS WIRE)--Mar 25, 2020--

SunLink Health Systems, Inc. (NYSE American: SSY) announced today that it is suspending its Share Repurchase Program in light of the COVID-19 pandemic. SunLink’s management believes the suspension, while conservative, is prudent given uncertainty regarding the length and severity of the pandemic and potential uncertainty regarding the impact of the pandemic on the timeliness of reimbursement claims and payments under various Federal and state programs (e.g., Medicare and Medicaid) and from private payors. SunLink has the ability to reinstate repurchases as circumstances warrant subject to compliance with applicable SEC rules. The Company is unable to predict the impact of the continuation of the COVID-19 pandemic on the Company’s financial condition, results of operations, business, or prospects.

Prior to its suspension, the Program was scheduled to expire at 4:00 PM, New York City Time, on June 1, 2020, unless further extended or earlier terminated. As of 4:00 P.M. on March 24, 2020, 87,534 Shares have been purchased under the Program for an aggregate purchase price of $100,706. As of March 19, 2020, the Company had 293 shareholders of record. If the number of holders of record remains under 300, the Company would be entitled to Deregister. However, the Company does not know whether the number of holders of record will further change during the suspension of the Program. Currently, the Company does not expect to take any action to Deregister absent a material reduction below 300 in the number of holders of record or the extended stability of the number of holders of record below 300.

In connection with the announcement, SunLink will amend its Schedule 13E-3 filed in connection with the Program and also will file a Form 8-K to update the risk factors described in SunLink’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 to disclose the following risk factor regarding the COVID-19 pandemic:

The COVID-19 pandemic has significantly increased economic uncertainty. It is likely that the current outbreak or continued spread of COVID-19 will cause an economic slowdown, and it is possible that it could cause a severe recession. While certain healthcare spending is considered non-discretionary and may not be significantly impacted by economic downturns, other types of healthcare spending may be adversely impacted by such conditions. When patients are experiencing personal financial difficulties or have concerns about general economic conditions, they may choose a high-deductible insurance plan or no insurance at all, which increases a hospital’s dependence on self-pay revenue. Moreover, a greater number of persons may elect to forgo treatments and therapies provided by SunLink’ s hospital, clinics, nursing home, and Specialty Pharmacy business. Accordingly, even a short recession could, result in an increase in uncollectible self-pay revenues, decreased patient volumes at Trace Regional Hospital and Floy Dyer Nursing Home as well as decreased sales volume by SunLink’s Specialty Pharmacy business.

All statements contained in this press release, other than statements of historical fact, are forward-looking statements including statements regarding the risks to the Company associated with the COVID-19 pandemic described in this press release. These statements speak only as of the date of this press release and are based on SunLink’ s current plans and expectations and involve risks and uncertainties that could cause actual future events or results to be different from those described in or implied by such forward-looking statements, including risks and uncertainties regarding: changes with respect to the pandemic, changes in financial markets; changes in economic, political or regulatory conditions or other trends affecting the healthcare industry; and changes in facts and circumstances and other uncertainties concerning the pandemic and the current suspension of Share Repurchase Program. Further information about these matters can be found in our SEC filings. Except as required by applicable law or regulation, we do not undertake any obligation to update our forward-looking statements to reflect future events or circumstances.

SunLink Health Systems, Inc. is the parent company of subsidiaries that own and operate healthcare businesses in the Southeast. Each of the Company’s healthcare businesses is operated locally with a strategy of linking patients’ needs with healthcare professionals. For additional information on SunLink Health Systems, Inc., please visit the SunLink website.

View source version on businesswire.com:

CONTACT: Robert M. Thornton, Jr.

Chief Executive Officer

(770) 933-7004

KEYWORD: GEORGIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: HEALTH HOSPITALS PRACTICE MANAGEMENT OTHER HEALTH MANAGED CARE GENERAL HEALTH

SOURCE: SunLink Health Systems, Inc.

Copyright Business Wire 2020.

PUB: 03/25/2020 04:31 PM/DISC: 03/25/2020 04:31 PM

http://www.businesswire.com/news/home/20200325005744/en

  • Associated Categories: Associated Press (AP), AP Business, AP Online - Georgia News, AP Business Wire - Georgia, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
$2 trillion virus rescue bill hits late snags in Senate
Senate leaders are racing to unravel last-minute snags in a $2 trillion economic rescue package to ease the financial pain of the coronavirus epidemic
4:42PM ( 6 minutes ago )
Dayton's Obi Toppin -- AP player of year -- heading to NBA
Dayton's Obi Toppin is headed to the NBA after leading the Flyers to a 29-2 record and No. 3 ranking as a redshirt sophomore
4:31PM ( 17 minutes ago )
Out of medication, US woman boards flight from Peru to US
Anna, a 33-year-old American who had run out of life-saving medication while stranded in a Peruvian hotel room, has boarded a plane home
4:30PM ( 18 minutes ago )
Associated Press (AP)
Chicago uses hotels for quarantine to ease hospital demand
Chicago's plan to reserve at least 1,000 hotel rooms for coronavirus patients through partnerships with five hotels is the first such strategy unveiled in the U.S. But it's unlikely to be the last
3:36PM ( 1 hour ago )
The Latest: WHO chief says Trump is 'taking responsibility'
The head of the World Health Organization commended U.S. President Donald Trump on Wednesday for “taking responsibility” for leading the response to the COVID-19 pandemic
3:27PM ( 1 hour ago )
The Latest: Argentine cyclist in UAE recovers from virus
Argentine cyclist Max Richeze has been released from a hospital in the United Arab Emirates
3:22PM ( 1 hour ago )
AP Business
Column: Will 2021 Tokyo Olympics become the spring games?
Imagine a gorgeous spring day in Tokyo
2:52PM ( 1 hour ago )
Florida governor's coronavirus dilemma: health vs. economy
The nation's struggle to protect both lives and the economy during the coronavirus outbreak is on full display in Florida
2:32PM ( 2 hours ago )
Possible twister: Damage reports at Mississippi-Alabama line
A suspected tornado heavily damaged a store in northern Mississippi and other structures along the border with Alabama as a severe storm system crossed the Deep South
9:14AM ( 7 hours ago )
AP Online - Georgia News
AP Business Wire - Georgia
Airlines, others to benefit from $2 trillion rescue bill
The White House and Senate leaders agreed early Wednesday on a $2 trillion economic rescue package, the largest in the country's history
2:44PM ( 2 hours ago )
'The whole city laid off': US jobless claims climb sky high
New unemployment benefit claims are rising to levels unseen in recent U.S. history as a result of coronavirus concerns
2:34PM ( 2 hours ago )
Biden calls for 'meticulous oversight' of virus aid package
Democratic presidential candidate Joe Biden says the congressional aid package addressing the coronavirus outbreak “goes a long way.”
2:12PM ( 2 hours ago )
AP Business - Economy
Stocks wobble as Wall Street downshifts from historic rally
Stocks are wobbling in tentative trading Wednesday as a historic, worldwide rally downshifts dramatically after just a day
11:57AM ( 4 hours ago )
Stocks drift up and down in tentative trading on Wall Street
Stocks are limping along in tentative trading early Wednesday, as a historic, worldwide rally downshifts dramatically after just a day
10:15AM ( 6 hours ago )
Of America and sacrifice: Is the country ready to step up?
For most Americans alive today, the idea of a shared national sacrifice is a collective abstraction
10:00AM ( 6 hours ago )
AP Business - Financial Markets
First signs of disruption appear in housing; markets "calm"
Economists have been waiting for the first signs of virus-related disruptions in housing with the expectation that they will be seismic
11:30AM ( 5 hours ago )
White House, Congress agree on $2 trillion virus rescue bill
The White House and Senate leaders of both political parties have reached agreement on a $2 trillion measure to rush aid to businesses, workers and a health care system slammed by the coronavirus pandemic
9:34AM ( 7 hours ago )
10 Things to Know for Today
Get ready for Wednesday, March 25, with a few things to know about the day’s news from The Associated Press
7:04AM ( 9 hours ago )
AP Business - Industries
Talks on $2T bill to ease economic pain from virus drag on
Unprecedented legislation to rush sweeping aid to businesses, workers and a health care system slammed by the coronavirus remains snagged on Capitol Hill
11:33PM ( 17 hours ago )
Potential coronavirus treatment granted rare disease status
The pharmaceutical giant that makes a promising coronavirus drug has registered it as a rare disease treatment with U.S. regulators
9:11PM ( 19 hours ago )
'A bullet train': Virus peak may come soon, swamp hospitals
Gov. Andrew Cuomo has sounded his most dire warning yet about the coronavirus pandemic
8:54PM ( 19 hours ago )
AP Business - Health Care
Dayton's Obi Toppin -- AP player of year -- heading to NBA
Dayton's Obi Toppin is headed to the NBA after leading the Flyers to a 29-2 record and No. 3 ranking as a redshirt sophomore
4:31PM ( 17 minutes ago )
Out of medication, US woman boards flight from Peru to US
Anna, a 33-year-old American who had run out of life-saving medication while stranded in a Peruvian hotel room, has boarded a plane home
4:30PM ( 18 minutes ago )
California governor says 4 banks to waive mortgage fees
California Gov. Gavin Newsom says four of the nation's largest banks have agreed to temporarily suspend mortgage payments for those impacted by the coronavirus
4:25PM ( 23 minutes ago )
First signs of disruption appear in housing; markets 'calm'
Economists have been waiting for the first signs of virus-related disruptions in housing with the expectation that they will be seismic
4:21PM ( 27 minutes ago )
New York mobilizes against onslaught from the virus
Just days after New York leaders ordered people to stay home, authorities are mobilizing to head off a potential public health disaster in the big city
4:20PM ( 28 minutes ago )