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TORONTO, Feb. 3, 2021 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of specialty pharmacy services to seniors, is pleased to announce that it has completed its previously announced bought deal public offering (the "Offering") and concurrent private placement (the "Concurrent Private Placement") of common shares of the Company ("Common Shares") for aggregate gross proceeds of approximately $21.2 million.

The Company issued an aggregate of 3,517,850 Common Shares (the "Offering Shares") pursuant to the Offering, including 458,850 Offering Shares issued as a result of the exercise in full of the over-allotment option granted to the syndicate of underwriters co-led by Eight Capital and Cormark Securities Inc. and including Beacon Securities Limited, Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., iA Private Wealth Inc., Desjardins Securities Inc. and Leede Jones Gable Inc., at a price of $4.25 per Offering Share for aggregate gross proceeds of approximately $14.95 million.

In addition, the Company issued an aggregate of 1,469,411 Common Shares (the "Placement Shares"), at a price of $4.25 per Placement Share, pursuant to the Concurrent Private Placement with Yorkville Asset Management Inc., for and on behalf of certain managed funds, and Dr. Jack Shevel, each of whom are existing major shareholders of the Company, for aggregate gross proceeds of approximately $6.25 million.

The net proceeds of the Offering and the Concurrent Private Placement are expected to be used to satisfy the $4 million cash component of the purchase price payable at closing in connection with the Company's proposed acquisition of SmartMeds Pharmacy Inc. and for working capital and general corporate purposes.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About CareRx Corporation:

CareRx is Canada's leading provider of specialty pharmacy services to seniors. We serve approximately 50,000 residents in over 900 seniors and other communities (long-term care homes, retirement homes, assisted living facilities, and group homes). We are a national organization with a large network of pharmacy fulfillment centres strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimes. We take an active role in working with our home operator partners to promote resident health, staff education, and medication system quality and efficiency. 

Forward Looking Statements:

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events, including the intended use of proceeds of the Offering and the Concurrent Private Placement. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward looking statements reflect management's current beliefs and are based on information currently available to management.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's liquidity and capital requirements, government regulation and funding, the highly competitive nature of the Company's industry, reliance on contracts with key customers and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward looking statements. The factors underlying current expectations are dynamic and subject to change.

SOURCE CareRx Corporation