Regional Health Properties, Inc. Outlines Reasons for Regional Shareholders to Vote YES for Proposed Merger with SunLink Health Systems, Inc.

Core Viewpoint - Regional Health Properties, Inc. is advocating for the approval of its merger with SunLink Health Systems, Inc., emphasizing that the merger is beneficial for all shareholders and will enhance the company's financial position and operational capabilities [2][4]. Company Overview - Regional Health Properties, Inc. is a self-managed healthcare real estate investment company focused on properties for senior living and long-term care [5]. Shareholder Communication - Recent communications from shareholders Ken Grossman and Charlie Frischer opposing the merger are viewed by the company as not representing the best interests of common shareholders, as their stakes are primarily in Series B preferred stock [2][4]. - The company encourages shareholders to review its Form 8-K filings for additional disclosures regarding the merger and the tender offer [2]. Merger Benefits - The merger is expected to bring approximately $6 million in capital to the combined company, improving the balance sheet and aiding operations [4]. - The merger will provide access to experienced management and industry expertise, which is considered advantageous for the combined entity [4]. - The potential for improved shareholder value is highlighted, with the merger offering a path to generate free cash flow for redeeming Series B preferred shares over time [4]. - Both Regional and SunLink's common shares have seen significant increases since the merger announcement, with Regional's shares rising approximately 120% and SunLink's by about 30% [4].