Believes WITHHOLDING Votes on the Only Two Directors Standing for Re-Election at Tomorrow’s Annual Meeting is the ONLY Way to Show Support for Urgent Changes
Notes That Recent Delaware Court Opinion Highlights the Litany of Governance Lapses and Leadership Failures Under Dr. Marlow Hernandez
Elliot Cooperstone, Lewis Gold and Barry Sternlicht (collectively with certain of their affiliates, the “Group” or “we”), who recently resigned as members of the Board of Directors (the “Board”) of Cano Health, Inc. (“Cano” or the “Company”) (NYSE: CANO) and collectively own an approximately 35% equity stake in the Company, today issued the following statement in relation to the Company’s 2023 Annual Meeting of Stockholders (the “Annual Meeting”) scheduled to be held tomorrow, June 15, 2023:
“Throughout our campaign for change at Cano, we have received an outpouring of support from fellow stockholders as well as strong endorsements from both of the leading independent proxy advisory firms. It is critically important that this shared desire for urgent change translates to resounding WITHHOLD votes for the two directors standing for election at tomorrow’s Annual Meeting. We, as stockholders, cannot afford to continue to rely on the same leadership that has presided over abysmal capital allocation, dismal corporate governance and disclosure practices, and disastrous strategic decisions. The stakes are far too high now that Cano has burned through more than a billion dollars in cash and seen its stock price plunge approximately 90%.
We note that the recent opinion issued by the Delaware Court of Chancery highlights the litany of governance lapses and leadership issues that have plagued Cano, which undoubtedly are responsible for the Company’s dismal performance. Although the Court did not grant our request to enjoin the Annual Meeting, we believe the litigation we commenced for the benefit of all Cano stockholders was an important and necessary step in holding Chief Executive Dr. Marlow Hernandez and others accountable for their misconduct. We urge all investors to read the Court’s Opinion, which highlights the conduct we unearthed in discovery and brought to light important issues that can no longer be swept under the rug.
We strongly urge the Board to take actions to respond to the will of stockholders based on tomorrow’s Annual Meeting vote outcome – which in our view is not only representative of stockholders’ opinions on Dr. Alan Muney and Kim Rivera – but is a referendum on the entire Board and leadership of the Company. If Cano continues to entrench current leadership by hiding behind the corporate machinery and, as a result, maintains the current morass of governance abuses and strategic failures, it will be doing a grave disservice to all stakeholders. We sincerely hope that the Board and leadership take to heart our desire – shared by many stockholders – for increased integrity and accountability. We believe that improvements on these fronts will help restore value at Cano.”
We urge stockholders to vote WITHHOLD on Proposal 1, the election of Dr. Muney and Ms. Rivera, on any proxy card received (the GREEN or WHITE proxy card).
Visit www.SaveCano.com to download a copy of our investor presentation and obtain information on how to vote your shares.