Form 4: Stonehill Capital Management and Affiliates Report Acquisition of Veradigm Inc. Restricted Stock Units

Stonehill Capital Management LLC, along with affiliated entities and individuals, reported the acquisition of 8,696 restricted stock units in Veradigm Inc. on March 24, 2025, under the 2024 Veradigm Stock Incentive Plan.

Summary

• Stonehill Capital Management LLC, Stonehill Master Fund Ltd., Stonehill Institutional Partners LP, John Motulsky, Peter Sisitsky, Michael Thoyer, Michael Lenard Stern, Samir Arora, and Garrett Zwahlen filed a Form 4 regarding transactions in Veradigm Inc. [MDRX] securities.
• The report indicates the acquisition of 8,696 Restricted Stock Units (RSUs) by Jonathan Sacks, a Partner at Stonehill Capital Management LLC and a director of Veradigm Inc., on March 24, 2025.
• These RSUs were granted under the Veradigm, Inc. 2024 Veradigm Stock Incentive Plan and will vest 100% on May 31, 2025.
• The Reporting Persons disclaim beneficial ownership of the securities reported on this Form 4, except to the extent of any pecuniary interest.
• The Reporting Persons may be deemed to have an indirect pecuniary interest in the RSUs pursuant to their arrangements with Mr. Sacks.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily reports a routine transaction. The acquisition of RSUs could be seen as a slightly positive sign, but it's not a major event.

Positives

• The acquisition of RSUs by a director may signal confidence in the company's future performance.

Future Outlook

The document does not contain specific forward-looking statements about Veradigm's future performance, but the vesting of RSUs on May 31, 2025, could be seen as a milestone.

Industry Context

This filing is a routine disclosure related to insider transactions and is common in the healthcare technology industry where Veradigm operates. It reflects the compensation structure and equity ownership of key personnel.

Comparison to Industry Standards

• Equity compensation in the form of RSUs is a standard practice in the technology and healthcare industries to align the interests of executives and directors with those of shareholders.
• Companies like Cerner (now Oracle Health) and Allscripts (now Veradigm) have similar equity compensation plans for their executives and directors.
• The vesting schedule of the RSUs (100% on May 31, 2025) is relatively short, which could incentivize the director to focus on short-term performance.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it involves the issuance of RSUs, which could potentially dilute existing shares upon vesting.
• The transaction incentivizes the director, Jonathan Sacks, to contribute to the company's success, which could benefit all stakeholders.

Key Dates

Keywords

Veradigm Inc., Stonehill Capital Management, Restricted Stock Units, RSUs, Form 4, Beneficial Ownership, Director, Stock Incentive Plan