TORONTO, July 8, 2024
/CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (the
"Trust") and DRI Capital Inc. ("DRI Healthcare"), the manager of
the Trust, today announced changes to their respective senior
executive teams.
The Board of Trustees of the Trust (the "Board") has appointed
Gary Collins as the interim CEO of
the Trust in addition to his role as Chair of the Board. DRI
Healthcare has named Ali Hedayat as
its interim CEO. Sandy Kwan has been
appointed as interim CFO of both the Trust and DRI
Healthcare.
The Board demanded and received the immediate resignation of
Behzad Khosrowshahi from the Board
of Trustees and as CEO of the Trust, and he also resigned as CEO of
DRI Healthcare.
The changes come as a result of an ongoing investigation of
irregularities related to certain alleged consulting
and other expenses presented by Behzad
Khosrowshahi to DRI Healthcare and the Trust for
reimbursement. Upon being made aware of these alleged
irregularities, the independent members of the Board of the Trust
immediately launched an investigation, which is being conducted by
a team of independent legal counsel and forensic accountants, and
directed and overseen by the Trust Audit Committee which is made up
of independent Trustees.
Chris Anastasopoulos has also
been suspended with pay as CFO of the Trust and CFO of DRI
Healthcare, effective immediately, and pending the outcome of the
investigation.
DRI Healthcare is cooperating fully with the Trust in connection
with the investigation and has committed to full restitution of the
funds that may be owing to the Trust. Although the total amount
owed cannot be completely determined at this time, information
reviewed to date as part of the ongoing investigation indicates a
current sum of approximately $7.5M.
As a gesture of good faith and pending full restitution, DRI
Healthcare is making an immediate payment to the Trust for this
amount.
It is important to note that, based on information reviewed to
date as part of the ongoing investigation, the Trust's assets,
including its portfolio of royalty assets and royalty cash
receipts, are in no way impacted by these events. The previously
released financial statements of the Trust already reflect the
invoiced expenses under investigation, which will be repaid to the
Trust.
"We are committed to conducting a thorough and timely
investigation, leveraging the expertise of our external advisers
and the cooperation of DRI Healthcare's leadership team," said
Gary Collins, Chair of the Board and
interim CEO of the Trust. "While the investigation progresses, the
priorities of our team are to continue delivering value to our
unitholders, executing on transactions, and providing transparency
to our various stakeholders with the highest standards of ethics
and excellence."
Mr. Collins is a seasoned senior leader with deep experience in
a wide range of industries and sectors. He has served as Chair of
the Board since February 2021, and
previously served as Minister of Finance in British Columbia and as a CEO and president.
Mr. Collins has also served on numerous public company boards and
as chair of numerous board and special committees.
"DRI Healthcare Trust and its Board have the full support of DRI
Healthcare and its parent company, and we are working together to
ensure a smooth and stable transition," said Ali Hedayat, interim CEO of DRI Healthcare. "We
are confident in the value of the portfolio, and our teams remain
focused on healthy deal flow and the strong pipeline of projects in
flight."
Mr. Hedayat is a longtime senior executive in the financial
services industry. He serves as a Member of the Board of DRI
Healthcare and the Trust, and as a senior advisor to Persis
Holdings Ltd, the parent company of DRI Healthcare. He has founded
and co-founded successful capital funds in London, New
York, Toronto, and
previously held senior roles at the Goldman Sachs Group. He has
served on the board of Restaurant Brands International since 2016
along with numerous current and former board positions.
Ms. Kwan has been Vice President of Finance of DRI Healthcare,
since 2022. In this role she has been responsible for overseeing
the financial and management reporting, tax and compliance
activities related to the Trust. She previously held finance and
accounting roles at Onex Corporation, Gluskin Sheff,
PricewaterhouseCoopers, Mackenzie Financial, and other
firms.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Healthcare, the pioneer
in global pharmaceutical royalty monetization with a 35-year
history of accelerating innovation by providing capital to
inventors, academic institutions and biopharma companies. Since its
founding in 1989, DRI Healthcare has deployed more than
US$3.0 billion, acquiring more than
70 royalties on 45-plus drugs, including Eylea, Keytruda, Orserdu,
Spinraza, Stelara, Vonjo, Zejula and Zytiga. DRI Healthcare Trust's
units are listed and traded on the Toronto Stock Exchange in
Canadian dollars under the symbol "DHT.UN" and in US dollars under
the symbol "DHT.U".
Caution concerning forward-looking statements
This news release may contain forward-looking information within
the meaning of applicable securities legislation. Forward-looking
information generally can be identified by the use of words such as
"expect", "continue", "anticipate", "intend", "aim", "plan",
"believe", "budget", "estimate", "forecast", "foresee", "close to",
"target" or negative versions thereof and similar expressions. Some
of the specific forward-looking information in this news release
may include, among other things, information pertaining to the
ongoing investigation and the Audit Committee's oversight thereof.
Forward-looking information is subject to a number of assumptions
and is subject to a number of risks and uncertainties, many of
which are beyond the Trust's control, that could cause actual
results to differ materially from those that are disclosed in or
implied by such forward-looking information. These risks and
uncertainties include, but are not limited to, risks relating to
the scope, timing and conclusions of the ongoing investigation,
risks relating to regulatory inquiries, litigation, or liabilities
that may result from the conclusions of the ongoing investigation,
including related disclosures which the Trust may be required to
make, risks relating to the impact of the conclusions of the
ongoing investigation on the price of the Trust's units and its
relationships with investors, employees, suppliers, lenders and
other parties, as well as the other risks that are disclosed in the
Trust's most recent annual information form. No assurance can be
given that these are all the factors that could cause actual
results to vary materially from the forward-looking statements in
this news release. You should not put undue reliance on
forward-looking statements. No assurances can be given that any of
the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do occur, the actual results,
performance or achievements of the Trust could differ materially
from the results expressed in, or implied by, any forward-looking
statements. All forward-looking information in this news release
speaks as of the date of this news release. The Trust does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise except as
required by law.
SOURCE DRI Healthcare Trust and DRI Capital Inc.