SUNLINK HEALTH SYSTEMS EXTENDS REDUCED EXERCISE PRICE PERIOD
ON WARRANTS THROUGH FEBRUARY 20, 2004
Atlanta, Georgia (January 16, 2004) - SunLink Health Systems, Inc. (AMEX:SSY) announced today that its board of directors has extended the reduced exercise price period through the close of business on February 20, 2004, for warrant-holders who elect to exercise their outstanding warrants to purchase SunLink Common Shares. During the extended exercise period the exercise price of the warrants will continue to be reduced from $8.625 to $2.50, a price which is approximately 90% of the average closing price of the common shares for the ten trading days prior to November 19, 2003, the date the reduced exercise price was originally offered.
SunLink also said it expects to report its second fiscal quarter results on February 10, 2004 and to conduct its second quarter conference call on February 11, 2004 to discuss its second quarter results.
SunLink intends to use the proceeds received from the exercise of warrants for working capital, to repay debt and for capital projects at its hospitals including the two community hospitals recently acquired from HealthMont, Inc.
SunLink Health Systems, Inc. currently operates eight community hospitals and related businesses in the Southeast and Midwest. Each SunLink facility is the only hospital in its community. SunLink's operating strategy is to link patients' needs with dedicated physicians and health professionals to deliver quality, efficient medical care in each community it serves.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the Company's business strategy. These forward-looking statements are subject to certain risks, uncertainties and other factors, which could cause actual results, performance and achievements to differ materially from those anticipated. Certain of those risks, uncertainties and other factors are disclosed in more detail in the Company's Annual Report on Form 10-K for the year ended June 30, 2003 and in its Form S-4 relating to the HealthMont merger dated August 11, 2003.