SunLink Health Systems Reaches Agreement For Sale Of Trace Regional Medical Center For Approximately $8M
Portfolio Pulse from Benzinga Newsdesk
SunLink Health Systems, Inc. (SSY) has agreed to sell Trace Regional Medical Center to Progressive Health Group, LLC for approximately $8M. The sale includes a hospital, skilled nursing facility, and three clinics. SunLink expects a pre-tax gain of $1.7M and will use the $7.5M proceeds for general corporate purposes. The sale is set to close on December 15, 2023, and will be reflected in the company's second fiscal quarter. Due to the sale, SunLink will delay its SEC filing of the 10-Q report for Q3 2023, using a Form 12b-25 to extend the deadline by five days.
November 13, 2023 | 10:44 pm
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SunLink Health Systems, Inc. is selling Trace Regional Medical Center for $8M, expecting a $1.7M pre-tax gain, with proceeds used for corporate purposes. The sale impacts Q2 fiscal reporting and delays Q3 SEC filing.
The sale of Trace Regional Medical Center is a significant transaction for SunLink Health Systems, likely to result in a positive financial impact due to the expected pre-tax gain. The proceeds will strengthen the company's financial position for general corporate purposes. The delay in the SEC filing is a regulatory compliance matter but does not negatively impact the company's financials. Investors may view the sale and the use of proceeds positively in the short term, potentially leading to an uptick in the stock price.
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