Note 2. – Merger

On April 15, 2025, the Company and Regional Health Properties, Inc. (“Regional”) jointly announced that they have entered into an amended and restated agreement and plan of merger (the “merger agreement”), pursuant to which SunLink is to merge with and into Regional (the “merger”) in exchange for the issuance of an aggregate of approximately 1,595,401 shares of Regional common stock and 1,408,121 shares of Regional’s newly-authorized Series D 8% Cumulative Convertible Redeemable Participating Preferred Shares (the “Regional Series D Preferred Stock”) with an initial liquidation preference of $12.50 per share. The merger agreement has been approved by each company’s board of directors and completion of the transaction remains subject to the receipt of the approvals of the shareholders of both Regional and SunLink, regulatory approvals and satisfaction of customary closing conditions.

The foregoing summary is not complete and is qualified in all respects by reference to the actual language of the merger agreement, a copy of which is filed as Exhibit 2.1 to the Current Report on Form 8-K filed by SunLink with the SEC on April 18, 2025. The merger agreement amends and restates in its entirety the previously announced agreement and plan of merger, between Regional and SunLink, dated as of January 3, 2025, which was described in the Current Report on Form 8-K filed by SunLink with the SEC on January 10, 2025.