SunLink Health Systems says that it does not expect a deficiency notice it received from the New York Stock Exchange to affect its planned merger with Regional Health Properties.

SunLink received the letter July 3, with the stock exchange noting that the Atlanta-based company did not hold an annual meeting of stockholders during the fiscal year, which ended June 30, as required by Section 704 of the NYSE American Company Guide. SunLink said that the notice has no immediate effect on the listing of its common stock, although it will be assigned a “.BC” indicator by the NYSE to indicate that the company is “below compliance.”

SunLink stockholders will vote on the merger July 29 at a special meeting. If approved, the deal is expected to be completed in the third quarter. SunLink stockholders would own approximately 43% of the combined company.

The agreement originally was predicted to close in the spring when it was detailed in a Jan. 3 filing with the Securities and Exchange Commission.

Formed in 2000, SunLink currently holds investments in two skilled nursing facilities, a community hospital, a healthcare technology company, a specialty pharmacy company and other assets in the Southeast, according to its website. Regional Health Properties, also headquartered in Atlanta, is a self-managed healthcare real estate investment company that invests primarily in senior living and skilled nursing properties.

Either party can terminate the merger agreement under certain conditions, SunLink said, “including if the merger is not consummated” by 5 pm ET Aug. 11.

“In the event the merger agreement is terminated for any reason, including any failure to obtain required shareholder approvals from the shareholders of SunLink and Regional, SunLink intends to hold its annual meeting no later than June 30, 2026, in order to regain compliance under the Company Guide, Sunlink said in a press release last week.