Regional Health Pptys Inc - RHEPB STOCK NEWS

Regional Health Properties (RHE) and SunLink Health Systems (SSY) have announced a definitive merger agreement, creating a combined healthcare company. Under the terms, SunLink will merge with Regional in exchange for 1,410,000 shares of Regional common stock and 1,410,000 shares of newly-authorized Series D 8% Cumulative Convertible Redeemable Preferred Stock ($10 liquidation preference).

The deal will give SunLink shareholders approximately 43% ownership of the combined company. SunLink brings $17.6 million in total assets and no long-term debt. Regional expects pre-tax cost synergies of $1.0 million by fiscal 2026. The merged company will be led by Regional's CEO Brent Morrison, with SunLink's CEO Robert Thornton serving as Executive VP of Corporate Strategy. The board will expand to include industry veterans C. Christian Winkle and Scott Kellman.

The transaction, unanimously approved by both boards, is expected to close in spring 2025, subject to shareholder and regulatory approvals.

Regional Health Properties (NYSE American: RHE) announced its Q3 2024 financial results on November 26, 2024. The company reported a reduced loss from operations of $0.3 million, improved from $0.4 million in Q3 2023. Adjusted EBITDA increased to $1.0 million, compared to $0.6 million in the same period last year. The company collected 80.3% of contractual rent and remains optimistic about future collections.

Business highlights include the Healthcare Services segment achieving its first positive EBITDA since 2022 and the Meadowood facility in Glencoe, AL reaching its highest occupancy level since 2022. The overall portfolio CMS star rating is the highest in over two years.

Financially, the company reported total revenue of $4.2 million and a net loss of $1.0 million. As of September 30, 2024, Regional had $49.7 million net of outstanding debt, with a weighted-average interest rate of 5.1% and maturity of approximately 17 years. Post-quarter, a $0.5 million line of credit was obtained to ensure compliance with debt payments.

Regional Health Properties has received a delisting notice from NYSE American for both its common stock and Series A Preferred Shares. The NYSE Regulation determined the company failed to regain compliance with Sections 1003(a)(i) and (ii) of the NYSE American Company Guide by the end of its 18-month compliance period on November 10, 2024.

The company has until November 18, 2024, to request a review by the Listings Qualifications Panel and intends to appeal the determination. Trading will continue during the appeal process. While the company is working to regain compliance, there is no guarantee of success.

Regional Health Properties, Inc. reports a strong financial performance for the fourth quarter and fiscal year 2023, with notable improvements in income from operations, net loss per share, and Adjusted EBITDA. The company successfully completed an Exchange Offer resulting in a simplified capital structure. Despite outstanding indebtedness, the company shows positive cash flows and liquidity.

Regional Health Properties, Inc. (NYSE American: RHE) announced its financial results for Q3 2023, reporting reduced loss from operations, net loss per share, and increased Adjusted EBITDA. The company collected 93% of contractual rent and provided business highlights, including compliance acceptance and trading of preferred shares. Management comments on strong EBITDAR coverage and commitment to improving transparency for investors. Financial results include total revenue of $4.1 million, a net loss of $1.0 million, and $51.4 million of outstanding indebtedness.

Regional Health Properties, Inc. announced financial results for Q2 2023. They recorded a $43.4 million gain on extinguishment of preferred stock and reduced net loss from $1.3 million to $0.7 million. They generated $0.9 million of Adjusted EBITDA in the quarter. The Company reported total revenue of $4.6 million. They had $52 million of outstanding indebtedness with a weighted-average annual interest rate of 5.0% and a weighted-average maturity of approximately 19 years.

Regional Health Properties, Inc. (NYSE American: RHE) has received notice from the NYSE American LLC that its plan to regain compliance with the Exchange's listing standards has been accepted. The company had previously received notices of non-compliance. The plan period extends until November 10, 2024.

Regional Health Properties, Inc. announced that its 12.5% Series B Cumulative Redeemable Preferred Shares have commenced trading on the OTCQB Venture Market.