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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