Cano Health holders Cooperstone, Gold, Sternlicht address leadership transition

Elliot Cooperstone, Lewis Gold and Barry Sternlicht who recently resigned as members of the Board of Directors of Cano Health and collectively represent the largest single stockholder of the Company, issued the below response to the Company’s Friday post-market announcement: “While we are pleased our campaign for leadership change at Cano brought about the long-overdue resignation of Dr. Marlow Hernandez as CEO, it is only the first step towards unlocking significant value for all stakeholders. …The current Board, half of which is composed of two WITHHOLD directors and the beleaguered ex-CEO, is simply not equipped to effectively oversee Cano at this critical juncture…Astonishingly, the Board believes it is appropriate for Dr. Marlow Hernandez to continue serving as a director, despite the fact that this is not permitted under his employment agreement, and despite his history of insider dealings and fiduciary delinquency. Dr. Hernandez’s employment agreement plainly states that ‘the Executive shall be deemed to have resigned from all officer and board member positions that the Executive holds with the Company or any of its respective subsidiaries and affiliates upon the termination of the Executive’s employment for any reason.’ In light of his history of alarming insider dealings, egregious capital allocation and strategic lapses, and massive value destruction, Dr. Hernandez should not, under any circumstances, be receiving any concessions or special treatment from Cano, and we will be closely investigating the Board’s handling of his ‘resignation.’