SunLink Shareholders Approve Charter Amendments to Protect Tax Net Operating Losses
November 15 2016 - 5:56PM
Business Wire
SunLink Health Systems, Inc. (NYSE MKT: SSY) today announced
that its shareholders approved, at its annual meeting on November
7, 2016, amendments to the company’s articles of incorporation to
restrict certain transfers of common shares in order to
protect the tax benefits of the company’s net operating losses
(NOLs). The amendments generally void transfers of shares that
would result in the creation of a new 4.9% shareholder or result in
an existing 4.9% shareholder acquiring additional shares. The
purpose of the amendments is to assist the company in protecting
the value of its accumulated NOLs by limiting transfers of the
company’s common shares that could ultimately result in an
“ownership change” under Section 382 of the Internal Revenue Code.
The amendments to the company’s articles of incorporation are
designed to work in tandem with the NOL Rights Plan adopted by the
company’s board of directors in September 2016.
The company estimates that it has approximately $10,000,000 of
federal NOLs as of September 30, 2016, which may be used in certain
circumstances to offset future taxable income and reduce federal
income tax liability. The company’s ability to use its NOLs would
be substantially limited if an “ownership change” under section 382
of the Internal Revenue Code were to occur. The amendments to the
articles of incorporation and the NOL Rights Plan were designed to
reduce the likelihood of an ownership change occurring.
SunLink Health Systems, Inc. is the parent company of
subsidiaries that own and operate healthcare facilities in the
Southeast and a pharmacy company in Louisiana. Each of the
company’s healthcare facilities is operated locally with a strategy
of linking patients’ needs with dedicated physicians and healthcare
professionals. For additional information on SunLink Health
Systems, Inc., please visit the company’s website at
www.sunlinkhealth.com.
This press release may contain certain statements of a
forward-looking nature. The statements contained herein which are
not historical facts are considered forward-looking statements
under federal securities laws. Such forward-looking statements are
based on the beliefs of our management as well as assumptions made
by and information currently available to them. The company has no
obligation to update such forward-looking statements. Actual
results may vary significantly from these forward-looking
statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161115006831/en/
SunLink Health Systems, Inc.Robert M. Thornton, Jr.,
770-933-7004Chief Executive Officer
Sunlink Health Systems (AMEX:SSY)
Historical Stock Chart
From Apr 2024 to May 2024
Sunlink Health Systems (AMEX:SSY)
Historical Stock Chart
From May 2023 to May 2024