SRx Health Solutions Announces the Cancellation of Approximately 18.8 Million Shares of its Capital Stock
SRx Health Solutions (NYSE American: SRXH) has announced the cancellation of approximately 18.8 million shares of its capital stock following a Settlement Agreement with former officers of its Canadian subsidiary, SRx Canada. The cancelled shares, which represent about 60% of the total outstanding shares, were originally issued during the acquisition of SRx Canada.
The cancellation is part of a Settlement, Share Forfeiture and Mutual Release Agreement where the Company agrees to release the Forfeiting Stockholders from certain claims. The Company plans to pursue legal action against other former SRx Canada officers who are not part of this Settlement Agreement to recover stockholder value.
SRx Health Solutions (NYSE American: SRXH) ha annunciato la cancellazione di circa 18,8 milioni di azioni del proprio capitale sociale a seguito di un Accordo di Transazione con ex dirigenti della sua filiale canadese, SRx Canada. Le azioni cancellate, pari a circa 60% del totale delle azioni in circolazione, erano state originate nell'ambito dell'acquisizione di SRx Canada.
La cancellazione rientra in un Accordo di Transazione, Confisca di Azioni e Liberatoria Reciproca, in base al quale la Società si impegna a sollevare i Soci che perdono le azioni da determinate pretese. La Società intende però intraprendere azioni legali contro altri ex dirigenti di SRx Canada che non partecipano a questo accordo per cercare di recuperare valore per gli azionisti.
SRx Health Solutions (NYSE American: SRXH) ha anunciado la cancelación de aproximadamente 18,8 millones de acciones de su capital social tras un Acuerdo de Transacción con exdirectivos de su filial canadiense, SRx Canada. Las acciones canceladas, que representan cerca del 60% del total de acciones en circulación, se emitieron originalmente durante la adquisición de SRx Canada.
La cancelación forma parte de un Acuerdo de Transacción, Pérdida de Acciones y Liberación Mutua en el que la Compañía acepta eximir a los accionistas que pierden las acciones de determinadas reclamaciones. No obstante, la Compañía planea iniciar acciones legales contra otros exdirectivos de SRx Canada que no forman parte de este acuerdo para recuperar valor para los accionistas.
SRx Health Solutions (NYSE American: SRXH)는 캐나다 자회사 SRx Canada의 전 임원들과의 합의에 따라 약 1,880만 주의 자본 주식을 취소했다고 발표했습니다. 취소된 주식은 전체 유통 주식의 약 60%에 해당하며, 원래는 SRx Canada 인수 시 발행된 것입니다.
이번 주식 취소는 합의, 주식 몰수 및 상호 면책 합의의 일부로, 회사는 몰수 대상 주주들에 대한 일부 청구를 포기하기로 합의했습니다. 회사는 이 합의에 포함되지 않은 다른 전 SRx Canada 임원들을 상대로 주주 가치를 회복하기 위한 법적 조치를 취할 계획입니다.
SRx Health Solutions (NYSE American: SRXH) a annoncé l'annulation d'environ 18,8 millions d'actions de son capital social à la suite d'un accord de règlement avec d'anciens dirigeants de sa filiale canadienne, SRx Canada. Les actions annulées, qui représentent environ 60 % du total des actions en circulation, avaient été émises lors de l'acquisition de SRx Canada.
Cette annulation s'inscrit dans le cadre d'un accord de règlement, de confiscation d'actions et de renonciation mutuelle, par lequel la Société accepte de libérer les actionnaires concernés de certaines réclamations. La Société envisage toutefois d'engager des poursuites contre d'autres anciens dirigeants de SRx Canada qui ne sont pas parties à cet accord afin de récupérer de la valeur pour les actionnaires.
SRx Health Solutions (NYSE American: SRXH) hat die Streichung von rund 18,8 Millionen Aktien seines Kapitals bekannt gegeben, die im Anschluss an eine Vergleichsvereinbarung mit ehemaligen Führungskräften seiner kanadischen Tochtergesellschaft SRx Canada erfolgt. Die gestrichenen Aktien, die etwa 60 % der ausstehenden Aktien ausmachen, wurden ursprünglich im Rahmen der Übernahme von SRx Canada ausgegeben.
Die Streichung ist Teil eines Vergleichs-, Aktienverfalls- und gegenseitigen Freigabevertrags, in dem das Unternehmen zustimmt, die verfallenden Anteilseigner von bestimmten Ansprüchen zu befreien. Das Unternehmen beabsichtigt, gegen weitere ehemalige SRx Canada-Führungskräfte, die nicht Teil dieses Vergleichs sind, rechtliche Schritte einzuleiten, um den Wert für die Aktionäre wiederzuerlangen.
- Cancellation of 18.8 million shares reduces total share count by approximately 60%
- Company maintains right to pursue legal remedies against other former officers to recover value
- Settlement Agreement resolves certain claims and potential liabilities
- Indicates significant issues with the previous SRx Canada acquisition
- Potential legal costs from pursuing claims against other former officers
- Suggests possible management and oversight problems in Canadian operations
Insights
SRx Health Solutions cancels 60% of outstanding shares through settlement with former Canadian subsidiary executives amid legal proceedings.
SRx Health Solutions has executed a significant corporate restructuring by canceling approximately 18.8 million shares of its capital stock, representing about
The canceled shares were originally issued during SRx's acquisition of its Canadian subsidiary. In exchange for the share forfeiture, the company has agreed to release these former executives from certain claims, effectively settling potential litigation between the parties. However, the announcement indicates that SRx intends to pursue legal action against other former SRx Canada officers who aren't parties to this settlement agreement.
This share cancellation represents a material change to SRx's capital structure and suggests serious operational or governance issues within the Canadian subsidiary. The CCAA filing indicates significant financial distress at SRx Canada, while the share cancellation and planned legal action against other former officers point to potential misconduct or contract breaches by former management. This settlement could potentially strengthen SRx's balance sheet by reducing outstanding shares, but also signals deeper corporate governance challenges that likely contributed to the Canadian subsidiary's financial difficulties.
The Company intends to explore all available legal remedies against former officers of SRx Canada
TAMPA, Fla., Aug. 14, 2025 (GLOBE NEWSWIRE) -- SRx Health Solutions, Inc. (NYSE American: SRXH) (the “Company”), a leading global health and wellness company, today announced that further to the previously disclosed grant of an Initial Order under the federal Companies’ Creditors Arrangement Act by the Ontario Superior Court of Justice to the Company’s Canadian subsidiary SRx Health Solutions (Canada), Inc. (“SRx Canada”) and certain of its subsidiaries, it has canceled approximately 18.8 million shares of its capital stock. The cancellation was made pursuant to a Settlement, Share Forfeiture and Mutual Release Agreement (the “Settlement Agreement”) between the Company and certain of the founders and former officers of SRx Canada, along with their respective affiliates and other related parties (the “Forfeiting Stockholders”).
Pursuant to the Settlement Agreement, the Forfeiting Stockholders have forfeited for cancellation approximately 18.8 million shares (the “Forfeited Shares”) of the capital stock of SRx Canada (the “Exchangeable Shares”) which are exchangeable for shares of the Company’s common stock, par value
The Forfeited Shares represent approximately
The Company intends to explore all available legal remedies against former officers of SRx Canada who are not parties to the Settlement Agreement in order to recover any lost value on behalf of its stockholders.
About SRx Health Solutions, Inc.
SRx Health Solutions Inc. is an integrated Canadian healthcare services provider that operates within the specialty healthcare industry. The SRx network extends across all ten Canadian provinces, making it one of the most accessible providers of comprehensive, integrated, and customized specialty healthcare services in the country. SRx combines years of industry knowledge, technology, and patient-centric focus to create strategies and solutions that consistently exceed client expectations and drive critical patient care initiatives aimed to improve the wellness of Canadians. For more information on SRx Health Solutions Inc., please visit www.srxhealth.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
SRx Health Solutions, Inc.
Kent Cunningham, Chief Executive Officer
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
FAQ
How many shares did SRx Health Solutions (SRXH) cancel in August 2025?
What is the purpose of SRXH's Settlement Agreement with former SRx Canada officers?
What percentage of SRXH's outstanding shares were cancelled in the August 2025 announcement?
What actions will SRXH take against former officers not part of the Settlement Agreement?
How were the cancelled SRXH shares originally issued?
