- DRI Healthcare Trust (TSX:DHT.UN) has revealed executive changes resulting from an ongoing investigation of its former CEO Behzad Khosrowshahi
- The company has been investigating irregularities related to alleged consulting and other expenses that Khosrowshahi presented to the company for reimbursement
- The estimated amount is roughly C$7.5 million
- Shares of DRI Healthcare are down 27.89 per cent to $10.99 as of 10:41 am ET
DRI Healthcare Trust (TSX:DHT.UN) stock is down big Monday after the company revealed executive changes resulting from an ongoing investigation of its former CEO Behzad Khosrowshahi.
In a news release, the company stated it has been investigating irregularities related to alleged consulting and other expenses that Khosrowshahi presented to the company for reimbursement, which is believed to amount to roughly C$7.5 million.
Shares of DRI Healthcare Trust (TSX:DHT.UN) are down 27.89 per cent to $10.99 as of 10:41 am ET Monday.
The Board of Trustees of the trust appointed Gary Collins as the interim CEO of the DRI Healthcare Trust in addition to his role as chairman of the board. DRI Healthcare, the manager of the trust, has named Ali Hedayat as its interim CEO. Sandy Kwan has been appointed as interim CFO of the trust and DRI Healthcare.
“We are committed to conducting a thorough and timely investigation, leveraging the expertise of our external advisors and the cooperation of DRI Healthcare’s leadership team,” Collins said in a statement. “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.”
The company revealed that Chris Anastasopoulos also has been suspended with pay as CFO of the trust and CFO of DRI Healthcare and pending the outcome of the investigation.
The investigation is being conducted by a team of independent legal counsel and forensic accountants and is being overseen by the trust audit committee.
“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,” Hedayat, said in a statement. “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.”
With headquarters out of Toronto, DRI Healthcare Trust is managed by DRI Capital Inc., a company focused on global pharmaceutical royalty monetization. The company’s business model is managing and growing a diverse portfolio of pharmaceutical royalties to deliver growth in cash royalty receipts.
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