‘Concerned shareholders’ of Cano issue letter on need for leadership change

Elliot Cooperstone, Lewis Gold and Barry Sternlicht , who recently resigned as members of the Board of Directors of Cano Health, issued the below letter to fellow shareholders. "We are writing to convey our serious concerns regarding the management and trajectory of Cano. We collectively own Class A and Class B common shares with aggregate voting power of approximately 36% of all the shares outstanding, making our group the Company’s single largest shareholder. The three of us recently made the difficult decision to resign from Cano’s Board after it became apparent that our persistent calls for enhanced corporate governance, improved capital allocation and financial controls and a more sustainable long-term strategy were being ignored. Our efforts were brushed aside despite the rapid deterioration of Cano’s balance sheet and market capitalization over the past 20 months. In our view, Dr. Marlow Hernandez, Cano’s Chief Executive Officer, and his close associates on the Board left us with no choice other than to resign as directors and start advocating for shareholders’ best long-term interests from outside the boardroom. Unfortunately, instead of responding to our concerns, Cano seems intent on muzzling us with ill-informed and meritless threats of litigation. It is important to underscore that we are not "activist investors", and we have no history of running public proxy contests. We have spent our careers establishing credibility across the financial markets and various corporate sectors, including healthcare services, based on our focus on the long-term. Each of us has served on public and private company boards of directors. Each of us has served as stewards of large amounts of capital and placed the highest priority on that responsibility. In addition, two of us have successfully grown and led healthcare services businesses. Given our backgrounds, as well as our sizable investment, we hope it is clear that we are squarely aligned with all Cano shareholders. In contrast, half of the remaining directors collectively own a paltry amount of Company stock – less than 1% – substantially all of which was awarded to them and not purchased. In the subsequent sections of this letter, we provide an overview of our concerns and ideas, including: The urgent need for C-suite and boardroom changes at Cano. The path to establishing the right corporate governance and the right, value-enhancing strategy for Cano. How you, as fellow shareholders, can provide feedback to a seemingly insular Board. We are not soliciting any support in connection with a future meeting of shareholders at this time. We simply want to ensure you understand key facts about Cano, including the reasons behind our recent resignations and the opportunities we see for a value-enhancing turnaround."