Veradigm, a healthcare technology company, has seen a sharp decline in its shares as it grapples with challenges related to financial reporting and compliance issues with Nasdaq.

Decline in Share Value

The company's shares plunged 22% in premarket trading, following a 21% drop in the new year and a significant 50% decrease over the past 12 months. This downward trend comes as Veradigm struggles to meet the deadline for filing required financial statements.

Compliance Concerns

Veradigm has issued a warning that it is unlikely to submit the necessary quarterly reports for 2023 and its annual report for 2022 by the specified deadline. Consequently, the company anticipates a delisting notice from Nasdaq and suspension of trading of its shares.

Protective Measures Implemented

In light of the impending suspension of its shares, Veradigm's board has unanimously adopted a stockholder rights plan. This strategy, common among publicly traded companies, aims to safeguard shareholders' interests and prevent hostile takeovers that do not benefit all stakeholders.

The rights plan will come into effect immediately and will be valid for one year. It will be triggered if any individual or group acquires 10% or more of Veradigm's outstanding shares without approval from the board.

Acquisition Announcement

Despite its current challenges, Veradigm has announced a strategic move to acquire ScienceIO, an artificial intelligence platform for healthcare, for $140 million in cash. The acquisition will be funded using the company's available cash reserves.

As Veradigm navigates through these difficulties, it remains committed to resolving its financial reporting issues and regaining compliance with Nasdaq listing requirements in order to restore its stock exchange listing promptly.

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