Editor’s Note: An update to this article has been published here.

Five Star CEO Bruce Mackey

BREAKING NEWS — Five Star Senior Living’s financial situation raises “substantial doubt on our ability to continue as a going concern,” President and CEO Bruce Mackey said Wednesday morning during the Newton, MA-based company’s third-quarter earnings call.

“Specifically, based on our cash balance at Sept. 30, 2018, and projected cash needs of the next year, we need to pursue a plan of action to fund our operating and capital requirements and meet our debt obligations,” Mackey said.

Options to raise capital that are available to the company, the CEO said, include selling some of its owned senior living communities.

To improve long-term stability, Mackey said, Five Star has had informal discussions with its primary senior living community owner, Senior Housing Properties Trust, but “they may or may not result in anything being done.”

On the real estate investment trust’s recent third-quarter earnings call, President and COO Jennifer Francis said that executives have discussed with Five Star the possibility of their selling some skilled nursing facilities to other operators. “We think that would certainly help with their rent coverage,” she added.

Wednesday, Mackey also mentioned the notice Five Star had received from Nasdaq Stock Market LLC in October, warning of potential stock exchange delisting.

“If we do not regain compliance within the allotted grace period, which could be up to 360 days, Nasdaq may delist our common shares,” he said. The stock price reflects industry headwinds and the company’s resulting financial performance, Mackey added.

McKnight’s Senior Living will have updates to this story.

Editor’s Note: An update to this article has been published here.

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