TORONTO, July 8, 2024 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (the "Trust") and DRI Capital Inc. ("DRI Healthcare"), the manager of the Trust, today announced changes to their respective senior executive teams.
DRI Healthcare Logo (CNW Group/DRI Healthcare Trust and DRI Capital Inc.)
The Board of Trustees of the Trust (the "Board") has appointed Gary Collins as the interim CEO of the Trust in addition to his role as Chair of the Board. DRI Healthcare has named Ali Hedayat as its interim CEO. Sandy Kwan has been appointed as interim CFO of both the Trust and DRI Healthcare.
The Board demanded and received the immediate resignation of Behzad Khosrowshahi from the Board of Trustees and as CEO of the Trust, and he also resigned as CEO of DRI Healthcare.
The changes come as a result of an ongoing investigation of irregularities related to certain alleged consulting and other expenses presented by Behzad Khosrowshahi to DRI Healthcare and the Trust for reimbursement. Upon being made aware of these alleged irregularities, the independent members of the Board of the Trust immediately launched an investigation, which is being conducted by a team of independent legal counsel and forensic accountants, and directed and overseen by the Trust Audit Committee which is made up of independent Trustees.
Chris Anastasopoulos has also been suspended with pay as CFO of the Trust and CFO of DRI Healthcare, effective immediately, and pending the outcome of the investigation.
DRI Healthcare is cooperating fully with the Trust in connection with the investigation and has committed to full restitution of the funds that may be owing to the Trust. Although the total amount owed cannot be completely determined at this time, information reviewed to date as part of the ongoing investigation indicates a current sum of approximately $7.5M. As a gesture of good faith and pending full restitution, DRI Healthcare is making an immediate payment to the Trust for this amount.
It is important to note that, based on information reviewed to date as part of the ongoing investigation, the Trust's assets, including its portfolio of royalty assets and royalty cash receipts, are in no way impacted by these events. The previously released financial statements of the Trust already reflect the invoiced expenses under investigation, which will be repaid to the Trust.
"We are committed to conducting a thorough and timely investigation, leveraging the expertise of our external advisers and the cooperation of DRI Healthcare's leadership team," said Gary Collins, Chair of the Board and interim CEO of the Trust. "While the investigation progresses, the priorities of our team are to continue delivering value to our unitholders, executing on transactions, and providing transparency to our various stakeholders with the highest standards of ethics and excellence."
Mr. Collins is a seasoned senior leader with deep experience in a wide range of industries and sectors. He has served as Chair of the Board since February 2021, and previously served as Minister of Finance in British Columbia and as a CEO and president. Mr. Collins has also served on numerous public company boards and as chair of numerous board and special committees.
"DRI Healthcare Trust and its Board have the full support of DRI Healthcare and its parent company, and we are working together to ensure a smooth and stable transition," said Ali Hedayat, interim CEO of DRI Healthcare. "We are confident in the value of the portfolio, and our teams remain focused on healthy deal flow and the strong pipeline of projects in flight."
Mr. Hedayat is a longtime senior executive in the financial services industry. He serves as a Member of the Board of DRI Healthcare and the Trust, and as a senior advisor to Persis Holdings Ltd, the parent company of DRI Healthcare. He has founded and co-founded successful capital funds in London, New York, Toronto, and previously held senior roles at the Goldman Sachs Group. He has served on the board of Restaurant Brands International since 2016 along with numerous current and former board positions.
Ms. Kwan has been Vice President of Finance of DRI Healthcare, since 2022. In this role she has been responsible for overseeing the financial and management reporting, tax and compliance activities related to the Trust. She previously held finance and accounting roles at Onex Corporation, Gluskin Sheff, PricewaterhouseCoopers, Mackenzie Financial, and other firms.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Healthcare, the pioneer in global pharmaceutical royalty monetization with a 35-year history of accelerating innovation by providing capital to inventors, academic institutions and biopharma companies. Since its founding in 1989, DRI Healthcare has deployed more than US$3.0 billion, acquiring more than 70 royalties on 45-plus drugs, including Eylea, Keytruda, Orserdu, Spinraza, Stelara, Vonjo, Zejula and Zytiga. DRI Healthcare Trust's units are listed and traded on the Toronto Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in US dollars under the symbol "DHT.U".
Caution concerning forward-looking statements
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target" or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, information pertaining to the ongoing investigation and the Audit Committee's oversight thereof. Forward-looking information is subject to a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust's control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, risks relating to the scope, timing and conclusions of the ongoing investigation, risks relating to regulatory inquiries, litigation, or liabilities that may result from the conclusions of the ongoing investigation, including related disclosures which the Trust may be required to make, risks relating to the impact of the conclusions of the ongoing investigation on the price of the Trust's units and its relationships with investors, employees, suppliers, lenders and other parties, as well as the other risks that are disclosed in the Trust's most recent annual information form. No assurance can be given that these are all the factors that could cause actual results to vary materially from the forward-looking statements in this news release. You should not put undue reliance on forward-looking statements. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, the actual results, performance or achievements of the Trust could differ materially from the results expressed in, or implied by, any forward-looking statements. All forward-looking information in this news release speaks as of the date of this news release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law.
