22:44:35 EDT Fri 30 Sep 2022
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Akumin Inc
Symbol AKU
Shares Issued 89,516,513
Close 2022-08-12 C$ 0.99
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Akumin sells $30-million in receivables, dismisses CFO

2022-08-12 18:24 ET - News Release

Mr. Riadh Zine reports

AKUMIN PROVIDES BUSINESS UPDATE AND ANNOUNCES CFO TRANSITION

Akumin Inc. has provided a business update, has terminated the employment of its chief financial officer, William Larkin, and has appointed David Kretschmer as interim chief financial officer, effective today.

The company has implemented a transformation program with initiatives focused on its operations, growth and capital. These initiatives are intended to support the company's objectives with respect to patient access and experience, customer and partner engagement, financial sustainability, and employee well-being. The company is receiving support from a globally recognized transformation specialist to help implement the program. As a part of this transformation, the company announced: (a) the termination of employment of Mr. Larkin, and the appointment of David Kretschmer, an experienced transformation finance executive who completed other business transformations in the health care industry, as interim chief financial officer, effective today; and (b) the sale of certain account receivables by subsidiaries of the company to a third party buyer for a purchase price of approximately $30-million.

Riadh Zine, chairman and chief executive officer of Akumin, commented: "Our transformation efforts to date have already resulted in significant efficiencies to our operations and show a positive momentum for further efficiencies, as discussed in our second quarter results. I am very excited to welcome David as our new interim chief financial officer. We are thrilled to have his expertise complement our team as we successfully execute our transformation program. On behalf of the board of directors of Akumin, I would also like to thank Bill for his contributions to the company and wish him the very best in his next endeavours."

Mr. Zine continued: "The sale of certain accounts receivables has significantly improved the liquidity of our company by an immediate cash infusion of approximately $30-million and a reduction in our days sales outstanding of our accounts receivables. Our cash position at the end of the second quarter of 2022 pro forma this sale would have been approximately $69-million. In addition, any future sale of similar accounts receivables in the normal course of business would not be expected to have any material impact on our revenues."

Before joining the company, Mr. Kretschmer worked for Surgery Partners Inc., a multispecialty ambulatory surgical centre company with $2.5-billion of revenues, as interim CFO and executive vice-president of strategy and transformation, and, prior to that, as senior vice-president, treasurer and CIO for Anthem Inc. renamed Elevance Health Inc., a health insurance provider with more than $130-billion of revenues, and he was a key team member in the execution of the successful business transformation of each of these companies.

About Akumin Inc.

Akumin is a national leader in comprehensive outpatient radiology and oncology solutions and a partner of choice for U.S. hospitals, health systems and physician groups. Akumin provides fixed-site outpatient radiology and oncology services through a network of 234 owned and/or operated centres, as well as outpatient radiology and oncology solutions to approximately 1,000 hospitals and health systems across 48 states. Akumin combines clinical and operational expertise with the latest advances in technology and information systems to deliver patient-centred innovation, service standardization, and exceptional health care value to its patients and partners.

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