ACCENDRA HEALTH INC/VA/

Current report

The market price for our common stock does not meet the New York Stock Exchange (NYSE) continued listing requirements and our efforts to cure the noncompliance may be unsuccessful.

Current report

Our common stock is subject to continued listing requirements on the NYSE as set forth in the NYSE’s Listed Company Manual. As previously disclosed, on October 6, 2026, we received notice from the NYSE that we were not in compliance with its continued listing standards because the average closing price of our common stock was less than $1.00 per share over a consecutive 30 trading-day period. This notice has no immediate impact on the listing of our common stock on the NYSE, subject to our compliance with the NYSE’s other continued listing requirements. We have a period of six months following the receipt of this notice to regain compliance with the minimum share price requirement. We intend to cure the NYSE minimum stock price listing requirement through a reverse stock split, which requires shareholder approval. We have called a special meeting of shareholders to approve a reverse stock split at a ratio in the range of 1-for-20 to 1-for-30. We cannot assure that the reverse stock split proposal will be approved and implemented.

Current report

As previously disclosed, on October 27, 2026, we received notice from the NYSE that we were not in compliance with its continued listing standards because we have an average market capitalization of less than $50 million over a consecutive 30 trading-day period and stockholders’ equity of less than $50 million. This notice has no immediate impact on the listing of our common stock on the NYSE, subject to our compliance with the NYSE’s other continued listing requirements. We have a period of 18 months following receipt of this notice to regain compliance with the market capitalization and stockholders’ equity requirement. The Company is considering a number of available alternatives to cure its non-compliance with this NYSE continued listing standard. The NYSE will review the Company’s business plan and, if accepted, the Company will be subject to quarterly monitoring by the NYSE of the progress of the business plan.

Current report

While we intend to regain compliance, the NYSE could ultimately delist our common stock if we fail to do so. Given our recent stock price decline and recent financial challenges, including the loss of significant Payor contracts, and the divestiture of our P&HS business, there is a risk that our stock price could remain below the minimum share price requirement. If our stock were delisted and traded on the over-the-counter market, it would significantly reduce liquidity, make it more difficult for shareholders to sell their shares, impair our ability to raise capital and could have a material adverse effect on our business operations and our financial condition, results of operations and cash flows.

Current report

Changes in our management team resulting from the hiring or departure of executives and key employees from time to time could disrupt our business.

Current report

Any significant leadership changes or senior management transitions involve inherent risk. In addition, executive leadership transition periods can be disruptive and may result in a loss of personnel with deep institutional or technical knowledge, or result in changes to business strategy or objectives, and may negatively impact our operations and relationships with employees and customers due to increased or unanticipated expenses, operational inefficiencies, uncertainty regarding changes in strategy, decreased employee morale and productivity and increased turnover.