SunLink Health Systems, Inc. Announces Sale of Trace Extended Care & Rehab
June 03 2024 - 5:20PM
Business Wire
SunLink Health Systems, Inc. (NYSE:AMERICAN: SSY) today
announced that its subsidiary, Southern Health Corporation of
Houston, Inc., has completed the sale of its Trace Extended Care
& Rehab senior care facility and related real estate in
Houston, Mississippi for approximately $7,100,000. The company said
the net proceeds of approximately $6,500,000 will be retained for
working capital and general corporate purposes. The company expects
to recognize a pre-tax gain on the sale of approximately $5,700,000
in its fourth fiscal quarter ending June 30, 2024.
SunLink noted that the sale is intended to further its strategy
of positioning itself for an extraordinary transaction, which might
include a merger or consolidation with a compatible third party as
a result of which the company may not be in the majority, while
also seeking to improve its existing operations and considering the
sale or disposition of non-performing assets. The company is
seeking to identify a strategic transaction which it believes would
offer its shareholders a reasonable opportunity for future
appreciation in the value of their shares at what the Board and
management believe is an acceptable level of risk.
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 Company’s website.
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 including, without limitation, statements regarding the
company’s business strategy. These forward-looking statements are
subject to certain risks, uncertainties, and other factors, which
could cause actual results, performance, and achievements to differ
materially from those anticipated. Certain of those risks,
uncertainties and other factors are disclosed in more detail in the
company’s Annual Report on Form 10-K for the year ended June 30,
2023 and other filings with the Securities and Exchange commission
which can be located at www.sec.gov.
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Robert M. Thornton, Jr. Chief Executive Officer
(770) 933-7004
Sunlink Health Systems (AMEX:SSY)
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