SunLink Health Systems declares $0.10 special dividend ahead of merger

ATLANTA - SunLink Health Systems, Inc. (NYSE American:SSY) announced Monday that its Board of Directors has declared a special cash dividend of $0.10 per share ahead of its proposed merger with Regional Health Properties, Inc. According to InvestingPro data, this marks a significant shift as the company historically hasn’t paid regular dividends. The company, currently valued at $8.17 million, maintains a strong balance sheet with more cash than debt.

The dividend will be payable to stockholders of record as of July 29, 2025, with payment scheduled for July 30, 2025. The total distribution is expected to be approximately $704,600, based on 7,040,603 outstanding shares as of June 20, 2025.

SunLink noted that the dividend is expected to be characterized as a return of capital rather than a dividend distribution, as the company does not anticipate having current or accumulated earnings and profits as described in Section 312 of the Internal Revenue Code.

The company’s board reserved the right to revoke the dividend if the merger is not approved at the Special Meeting of Shareholders scheduled for July 29, 2025, if the merger agreement terminates, or if the agreement is amended.

The merger remains subject to several conditions, including shareholder approvals from both companies, absence of governmental orders prohibiting the transaction, effectiveness of the Registration Statement on Form S-4 (which was declared effective by the SEC on June 25, 2025), and authorization for trading of Regional’s common and preferred stock on the over-the-counter markets or NYSE American.

SunLink Health Systems operates subsidiaries that own and manage a pharmacy business in the Southeast.

The information in this article is based on a company press release statement.

In other recent news, SunLink Health Systems, Inc. has declared a special cash dividend of $0.10 per share for its common stockholders. This announcement is tied to the company’s proposed merger with Regional Health Properties, Inc., as detailed in an amended merger agreement. The merger, initially announced in January 2025 and revised in April 2025, will see SunLink merging into Regional Health Properties, with the latter surviving the merger. The special dividend, part of a larger arrangement that allows for up to $1,000,000 in dividends, is scheduled for payment on July 30, 2025, to shareholders of record as of July 29, 2025. However, the dividend’s issuance is contingent on several factors, including shareholder approval of the merger at a special meeting. The merger’s completion is also subject to regulatory clearances and other customary closing conditions. Additionally, the board of directors has reserved the right to revoke or postpone the dividend if the merger is not approved or if the agreement is altered. This information was disclosed in a recent SEC filing by SunLink Health Systems.

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