Oklahoma City-based Graymark Healthcare Inc, the nation's second-largest provider of sleep diagnostic services, has pushed back the closing date of a merger that could save the company from scaling back its operations or shutting down.
Graymark's Chief Operating Officer Daryl Royer said Tuesday that he anticipates the company's merger with Oklahoma City-based Foundation Surgery Affiliates will close in the third quarter. Previously the company had said it expected to close the deal before the end of the second quarter.
“Like any business transaction of this nature, there are significant steps to get us there and it's just a matter of timing,” Royer said. “The transaction is still in progress. There are no assurances the transaction will close, but we do anticipate it will.”
Graymark said in a regulatory filing in May that it faced a serious cash shortfall and could be forced to cease operations if it could not close the merger with Foundation.
The company posted a $2.7 million loss in the first quarter and faced a cash shortfall of more than $20 million at the end of March, according to regulatory filings.
“If the company is unable to close the Foundation transaction or raise additional funds, the company may be forced to substantially scale back operations or entirely cease its operations and discontinue business,” Graymark said in the filing.
Like any business transaction of this nature, there are significant steps to get us there and it's just a matter of timing.”
Graymark's Chief Operating Officer