Akumin Inc. Provides Update on Trading on the Toronto Stock Exchange and Stockholder Information
News Provided by Akumin Inc. / Nov 2, 2023. 5:00pm ET
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
PLANTATION, FLORIDA, November 2, 2023 — Akumin Inc. (“Akumin” or the “Company”) (TSX: AKU) announced today that the Toronto Stock Exchange (“TSX”) has advised the Company that trading of its common stock will resume on the opening of markets on November 3, 2023. The Company is issuing this press release to provide certain information for its stockholders at the request of the TSX.
As previously disclosed on October 20, 2023, the Company entered into a Restructuring Support Agreement (including all exhibits thereto, collectively, the “RSA”) with certain parties. A copy of the RSA is publicly available at https://dm.epiq11.com/Akumin and additional information regarding the transactions contemplated by the RSA can be found at http://www.AkuminTransaction.com.
To implement the transaction in a timely and efficient manner, the Company and certain of its subsidiaries voluntarily commenced prepackaged chapter 11 cases (the “Chapter 11 Cases”) in the United States Court for the Southern District of Texas (the “Court”) on October 22, 2023 (as amended, supplemented or otherwise modified from time to time, the “Prepackaged Plan”). The Company’s disclosure statement for the Prepackaged Plan, which is also available at https://dm.epiq11.com/Akumin (the “Disclosure Statement”), includes, among other things, a summary of the chapter 11 process, the events leading up to the Company’s entry into the transaction, and certain other financial information (including financial projections and a liquidation analysis).
The Company is seeking and expects to obtain confirmation of the Prepackaged Plan from the Court on or around November 29, 2023. If confirmed by the Court, the Company expects to emerge from chapter 11 immediately after obtaining certain regulatory approvals.
During the process, Akumin’s operations are expected to continue as normal. The Company expects to continue to pay trade creditors, employees, and other partners in the ordinary course of business.
As previously disclosed, if confirmed by the Court, the Prepackaged Plan contemplates that holders of common stock will receive their pro rata share of US$25,000,000 and, if certain conditions are met that are specified in the Prepackaged Plan, contingent value rights to receive additional cash consideration at a later date pursuant to an agreed formula (the “CVRs”). The terms of the CVRs and pay-out formula are described in the Prepackaged Plan and Disclosure Statement. If the conditions to payment under the CVRs are not met, no additional cash consideration will be payable under the terms of the CVRs. As part of the court process and in accordance with the terms of the Prepackaged Plan, the Company is not soliciting or seeking votes from common stockholders in connection with the transaction. Upon the Company’s emergence from the chapter 11 process, all common stock outstanding prior to emergence will be cancelled.
Additional details regarding the restructuring transaction, the RSA and the Prepackaged Plan are included in the Form 8-Ks that were filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 20, 2023, October 23, 2023 and October 27, 2023, respectively, and are available on EDGAR and SEDAR at www.sec.gov and www.sedar.com.
Additional information regarding the transaction is also available at www.AkuminTransaction.com. Court filings and other information related to the proceedings are available and administrated by the Company’s claims agent, Epiq Corporate Restructuring LLC, at https://dm.epiq11.com/Akumin or by calling toll-free at (877) 589-9709 (or +1 (503) 966-8627 for calls originating outside of the U.S.), or by emailing email@example.com.
Akumin is a national outpatient partner of choice for U.S. hospitals, health systems and physician groups, addressing their outsourced radiology and oncology needs. Akumin provides comprehensive radiology and oncology services and solutions to approximately 1,000 hospitals and health systems across 48 states, and offers fixed-site outpatient diagnostic imaging through a network of owned and/or operated facilities. By combining clinical and operational expertise with the latest advances in technology and informatics, Akumin delivers unparalleled patient experiences and outcomes. Our radiology procedures include MRI, CT, PET/CT, ultrasound, 3D mammography, X-ray, and other interventional procedures; our oncology services include a full suite of radiation therapy and related offerings. For more information, visit www.akumin.com.
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved.” In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the following: the Company’s ability to obtain the approval of the Court with respect to the Prepackaged Plan and to motions in the Chapter 11 Cases; the risk that the Company may not be able to continue operating in the ordinary course of business; risks associated with third party motions in the Chapter 11 Cases; the effects of the Chapter 11 Cases on the Company and on the interests of various constituents, including the recovery with respect to the Company’s common stock; the length of time the Company will operate under the Chapter 11 Cases and the continued availability of operating capital during the pendency of the Chapter 11 Cases; the potential adverse effects of the Chapter 11 Cases on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the restructuring transaction; the Company’s trading price and the effects of the Chapter 11 Cases and of the Company’s suspension from trading on the NASDAQ Stock Market LLC on the liquidity of the Company’s common stock. The Company therefore cautions readers against relying on such forward-looking statements. A further description of the risks and uncertainties relating to the business of the Company is contained in the Company’s most recent Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as well as any amendments thereto reflected in subsequent filings with the SEC, which are available at www.sec.gov and www.sedar.com. All forward-looking statements attributable to the Company or persons acting on the Company’s behalf are expressly qualified in their entirety by the foregoing cautionary statements. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.