Accendra Health drops ATM plan, nets $45M from asset sales

Accendra Health (the "Company") is providing an update on its capital allocation plans and the timeline for the replacement of its chief executive officer.

Given recent market conditions, the Company has determined that it is in the best interest of stakeholders not to put in place an at-the-market issuance program.

The program was intended to allow the Company to opportunistically issue modest amounts of equity over time, with the proceeds to be used to reduce outstanding indebtedness, including debt trading at discounts to par value.

The program was never intended as a source of liquidity for the Company.

Not implementing the program will have no impact on the Company’s results of operations or published guidance.

In addition, with increasing cash collections and strengthening progress in resolving payor collection issues, the Company remains confident in its liquidity position.

The Company was undrawn on its $300 million revolving credit facility at the end of the second quarter and does not expect to rely on that facility other than to address occasional working capital fluctuations.

The Company remains committed to strengthening its balance sheet and reducing leverage.

The Company is also providing an update on the opportunistic sale of two non-core assets.

The first of these sales closed in the third quarter and the second is expected to close before the end of the year.

Together these sales represent a cash injection of approximately $45 million in the third and fourth quarters of the year and will have de minimus impact on the Company’s Adjusted EBITDA.

The Company is also providing an update on its announcement regarding the CEO succession plan.

The Company’s Board of Directors has maintained a comprehensive, long-standing CEO succession planning process supported by leading executive search and advisory firms.

Following Mr.

Pesicka’s formal announcement of his intention to retire by the end of 2026, the Board promptly advanced the next phase of its succession process and has been actively evaluating candidates.

The Board has identified a strong pipeline of potential candidates with the experience and capabilities needed to lead the Company into its next phase of growth.

The Board currently expects to announce a successor by mid-September 2026, positioning the Company for a timely leadership transition well ahead of Mr.

Pesicka’s planned retirement.

Mr.

Pesicka will continue to serve as CEO until his successor is in place and will serve in an advisory capacity following the transition to support continuity and an orderly handoff.