Regional Health Properties and SunLink Health Systems extend merger agreement deadline

Regional Health Properties, Inc. (OTCQB:RHEP), a healthcare facility operator with $20.69 million in revenue and a market capitalization of $5.43 million, and SunLink Health Systems, Inc. agreed Sunday to amend their merger agreement, extending the deadline for completing their proposed merger to August 11, 2025. The previous termination date was set for June 30, 2025.

According to a statement in a press release and U.S. Securities and Exchange Commission filing, both companies determined that required shareholder approvals for the merger would not be obtained by the original deadline. The amendment allows additional time to secure these approvals and includes a clarifying change to the agreement. Regional Health Properties has shown strong momentum recently, with its stock price rising 18% in the past week and 75% over the last six months, according to InvestingPro data.

Under the amended terms, either company may terminate the merger agreement if the transaction is not completed by 5:00 p.m. Eastern time on August 11, 2025. The merger, first outlined in an amended and restated agreement dated April 14, 2025, would result in SunLink merging with and into Regional Health Properties, with Regional remaining as the surviving corporation.

The companies stated that the merger remains subject to approval by shareholders of both Regional Health Properties and SunLink Health Systems. The joint proxy statement and prospectus for the merger will be filed with the SEC as part of a registration statement on Form S-4.

Both Regional Health Properties and SunLink Health Systems’ common stock and Series A Redeemable Preferred Shares are currently traded on the OTCQB market under the symbols RHEP and RHEPA, respectively. On June 11, 2025, NYSE American LLC filed to delist these securities from its exchange.

This information is based on a press release statement and an SEC filing made Monday.

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