PLANTATION, Fla., Nov. 8, 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, its interim financial
statements for the period ended March 31,
2021, and each of their related management's discussion and
analysis and CEO and CFO certificates (such restated filings, the
"Restated Filings") to reflect corrections relating to its
estimates for implicit price concessions on historic accounts
receivable. Although the timing of such filings remains to be
determined, Akumin still anticipates filing the Required Reports
and the Restated Filings on or before November 15, 2021.
Also as previously announced, in connection with that
restatement, Akumin conducted 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. Akumin now confirms that, while
in the process of integrating the accounting policies and
procedures of the Company and Alliance HealthCare Services, Inc.
("Alliance") in connection with Akumin's acquisition of Alliance on
September 1, 2021, management
identified certain costs that were capitalized by Akumin under a
process that differed from the processes applied by Alliance.
Because of these differing processes, Akumin instigated a review of
these capitalized expenditures and consulted the limited
authoritative GAAP literature, as well as related non-authoritative
accounting guidance, with respect to capitalization of property and
equipment. While the review is ongoing, Akumin has determined
that certain costs that were previously capitalized for the fiscal
years ended December 31, 2020 and
2019, and for the quarter ended March 31,
2021, should more accurately be expensed as repair and
maintenance. Under ASC 250, Accounting Changes and Error
Corrections, this change is considered an error for accounting
purposes. Although the quantum of the change is still being
finalized, it is currently expected that the changes from the
Restated Filings will result in a net book value of property and
equipment as at June 30, 2021 of
$60.4 million as compared to
Akumin's previously reported March 31,
2021 net book value of property and equipment of
$79.2 million.
Finally, preparation of the Restated Filings and the Required
Reports has impacted the timely completion, and auditor's review,
of Akumin's interim financial statements for the quarter ended
September 30, 2021. The
completion of those interim statements is dependent on the results
contained in the Restated Filings and the Required Reports.
As a result, Akumin may not be able file its interim financial
results for the quarter ended September 30,
2021, and the related management's discussion and analysis
and CEO and CFO certificates (collectively, the "Q3 Filings") by
the reporting deadline of November
15, 2021. Akumin is currently working to complete the
Q3 Filings and the auditor's review of such filings at the earliest
possible date and currently expects to be in a position to file the
Q3 Filings by December 15, 2021,
being within 30 days after the November 15,
2021 deadline.
Akumin confirms that since the date of the Default Announcement,
other than as described above: (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)
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 and the MCTO continues to apply.
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.
With the acquisition of Alliance HealthCare Services, Akumin now
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 Required
Reports, Restated Filings, and Q3 Filings, the impact of certain
adjustments on the Required Reports and Restated Filings and
Akumin's intentions to continue to satisfy the provisions of the
alternative information guidelines under NP 12-203. 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.