Regional Health Properties announced Monday that it faces potential delisting from stock exchange NYSE American LLC for not filing its 2018 annual report with the Securities and Exchange Commission by the April 16 deadline.
The delay, according to the company, is related to a forbearance agreement that “will impact the Company’s conclusion with respect to its ability to continue as a going concern.”
Regional Health Properties said it received the notice of noncompliance from the stock exchange on Wednesday. The company currently owns, leases or manages for third parties 30 senior living and long-term care facilities, according to its website, although an April 15 SEC filing announced plans to sell four skilled nursing facilities to MED Healthcare Partners for $28.5 million.
The company had disclosed April 2 that it needed more time to file the report on Form 10-K and related exhibits because of a second amended and restated forbearance agreement the company and its subsidiaries had entered into March 29 with Pinecone Realty Partners II LLC. The original loan agreement was dated Feb. 15, 2018.
“The Second A&R Forbearance Agreement requires, among other things, that the Company undertake transactions whose effect would be to extinguish the principal and fees owed under the Loan Agreement,” Regional Health Properties said. “The Company’s ability to complete the transactions contemplated by the Second A&R Forbearance Agreement will impact the Company’s conclusion with respect to its ability to continue as a going concern … and related disclosures to be included in the Annual Report.”
Regional Health Properties said it plans to file the report within 90 days.
The NYSE said it will monitor the company for six months, and if the company does not file the annual report during that time, it may allow the company’s common (traded under the symbol RHE) and preferred (RHE PRA) stock to be traded for up to another six months or could decide to suspend and delist the company.
The stock exchange could decide to delist the company at an earlier time under certain circumstances, however, Regional Health Properties said.
The company also received a deficiency letter from NYSE American in August, because shares were “selling for a low price per share for a substantial period of time.”