Investor group with 35% stake in Cano ‘condemn Board’s egregious conduct’

Elliot Cooperstone, Lewis Gold and Barry Sternlicht issued the below letter to Cano Health stockholders. As a reminder, the Group’s advocacy this past spring resulted in overwhelming WITHHOLD votes against Dr. Alan Muney and Kim Rivera, who were the two members of the Board of Directors standing for re-election at the Annual Meeting of Stockholders held on June 15. “The three of us hold an approximately 35% equity stake in Cano, making our Group the largest stockholder of the Company. We are gratified that the initial phase of our campaign for change at Cano resulted in the current Board being harshly rebuked by more than 82% of voting stockholders at the recent Annual Meeting. We are equally pleased that our efforts helped lead to Dr. Marlow Hernandez resigning as Chief Executive Officer following a troubled public market tenure that was defined by abysmal capital allocation, egregious disclosure lapses and related-party transactions, persistent strategic missteps and substantial value destruction. This has paved the way for a new Chief Executive Officer, which we suggested during our service as directors, to start bringing sorely needed operational acumen, proper ethics and integrity to Cano. We encourage Mark Kent, Cano’s interim Chief Executive Officer, and his team to focus on achieving efficiencies, eliminating excesses and executing a more focused strategy. If supported by a reconstituted Board and no longer shackled to Dr. Hernandez’s self-serving agenda, we are confident they can unlock Cano’s significant earnings power and enhance value for all of us. This brings us to the purpose of today’s letter: making sure you are aware of key facts and in a position to continue to share your views with what remains an entrenched Board.”