24/7 Market News Snapshot 06 January, 2025 – Regional Health Properties, Inc. (NYSE:RHE)

January 6, 2025

DENVER, Colo., 06 January, 2025 (247marketnews.com) – (NYSE:RHE) are discussed in this article.
Regional Health Properties, Inc. (RHE) is witnessing a significant surge in market performance as it announces a transformative merger with SunLink Health Systems, Inc. The company’s stock has seen an impressive rise in pre-market trading, reaching $4.689—an extraordinary increase of 202.52% from the prior day’s closing at $1.550. This upswing has drawn considerable attention from investors, reflected in an active trading volume of 2.09 million shares, indicating heightened confidence and interest in RHE’s prospects.

The merger agreement, which unites RHE and SunLink, involves the issuance of 1,410,000 shares of RHE’s common stock, along with an equal number of newly authorized Series D 8% Cumulative Convertible Redeemable Preferred Stock to SunLink’s shareholders. This strategic alliance, unanimously approved by both companies’ boards, aims to fortify their positions in the healthcare real estate sector. Brent S. Morrison, President and CEO of Regional, highlighted the merger’s potential, stating, “By merging SunLink’s complementary pharmacy business with Regional’s extensive network of healthcare facilities, we are positioning ourselves for both sustainable growth and enhanced shareholder value.”

Upon finalization of the merger, expected in spring 2025 subject to regulatory approvals and shareholder consent, SunLink investors will control approximately 43% of the newly formed entity. The merger is projected to yield pre-tax cost synergies of about $1 million by the end of fiscal 2026, with additional operational synergies likely to emerge thereafter. Furthermore, the addition of experienced professionals C. Christian Winkle and Scott Kellman to the board is expected to strengthen leadership and expertise within the newly unified company. This merger marks a critical advancement toward delivering comprehensive healthcare solutions and fostering strengthened community service capabilities.

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