PLANTATION, Fla., Oct. 25, 2021 /CNW/ - Akumin Inc. (NASDAQ: AKU)
(TSX: AKU) ("Akumin") is providing this update on the status of the
management cease trade order granted by the Ontario Securities
Commission (the "OSC"), as principal regulator of Akumin, on
August 20, 2021 (the "MCTO") under
National Policy 12-203 – Management Cease Trader Orders ("NP
12-203"). The MCTO was granted following Akumin's application to
the OSC once it was determined it was not in a position to file its
interim financial report for the quarter ended June 30, 2021 along with the related management's
discussion and analysis and CEO and CFO certificates (collectively,
the "Required Reports") by the reporting deadline of August 16, 2021, as initially announced on
August 15, 2021 (the "Default
Announcement"). The management cease trade order prevents the
officers and/or directors named in the order from trading in
Akumin's securities but does not affect the ability of other
shareholders, including the public, to trade in securities of
Akumin.
As previously announced, Akumin will be restating its annual
financial statements for the periods ended December 31, 2020 and December 31, 2019 to reflect corrections relating
to its estimates for implicit price concessions on historic
accounts receivable. In connection with that restatement,
Akumin is also conducting a review of its procedures for those same
periods relating to the capitalization, as opposed to the repair
and maintenance expense, of components that are replaced when
equipment is repaired. Such additional review is expected to
result in the Required Reports and the restated financial
statements not being delivered until on or before November 15, 2021.
On October 22, 2021,
Akumin entered into an agreement with its lenders to extend
the waiver of the previously announced default under its revolving
credit agreement, extending the deadline to delivery the Required
Reports from the original extended date of October 15, 2021 to the new extended date of
November 15, 2021. Until the
Required Reports are delivered, the amounts available to draw under
the revolving credit facility are reduced from $55 million to $10
million. Akumin does not presently have any amounts
due under its revolving credit facility.
Akumin confirms that since the date of the Default Announcement:
(i) there has been no material change to the information set out in
the Default Announcement that has not been generally disclosed;
(ii) there has been no failure by Akumin in fulfilling its stated
intentions with respect to satisfying the provisions of the
alternative information guidelines set out in NP 12-203; (iii)
there has not been any other specified default by Akumin under NP
12-203; and (iv) other than as disclosed above there is no other
material information concerning the affairs of Akumin that has not
been generally disclosed.
Akumin confirms that it will continue to satisfy the provisions
of the alternative information guidelines under NP 12-203 by
issuing bi-weekly default status reports in the form of news
releases for so long as it remains in default of the above-noted
filing requirements.
About Akumin Inc.
Akumin is a national partner of choice for U.S. hospitals,
health systems and physician groups, with comprehensive solutions
addressing outsourced radiology and oncology service line needs.
Akumin provides (1) freestanding, fixed-site outpatient
diagnostic imaging services through a network of more than 170
owned and/or operated independent imaging centers located in 11
states; and (2) outpatient radiology and oncology solutions to more
than 1,000 hospitals and health systems in 46 states. By combining
clinical and operational expertise with the latest advances in
technology and information systems, Akumin and its ~4,000 Team
Members facilitate more efficient and effective diagnosis and
treatment for patients and their providers in 46 states. Akumin's
imaging procedures include MRI, CT, positron emission tomography
(PET and PET/CT), ultrasound, diagnostic radiology (X-ray),
mammography, and other interventional procedures; our cancer care
services include a full suite of radiation therapy and related
offerings. For more information, visit www.akumin.com and
www.alliancehealthcareservices-us.com.
Forward Looking Information
Certain statements contained in this press release may
constitute forward-looking information. These statements relate to
future events or future performance. The use of any of the words
"could", "intend", "expect", "believe", "will", "projected",
"estimated", "proposed" and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking information and are based on Akumin's
current belief or assumptions as to the outcome and timing of such
future events. In particular, this release contains forward-looking
information relating to the anticipated filing of the Interim
Statements. Such forward-looking information are subject to risks
and uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements, including, but not limited to, the risks described in
greater detail in the "Risk Factors" section of Akumin's Annual
Information Form dated March 31,
2021, which is available at www.sedar.com and www.sec.gov.
These risks are not intended to represent a complete list of the
risks that could affect Akumin; however, these risks should be
considered carefully. Further, various assumptions or factors are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to Akumin. The forward-looking information contained in
this release is made as of the date hereof and Akumin is not
obligated to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. Because of the
risks, uncertainties and assumptions contained herein, investors
should not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein.
The TSX has not in any way passed upon the merits of and has
neither approved nor disapproved the contents of this news
release.
SOURCE Akumin Inc.