TORONTO, Feb. 24, 2023 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, announces the closing of the second tranche of its previously announced private placement (the "Private Placement") of 1,481,500 common shares of the Company ("Common Shares") to Yorkville Asset Management Inc. (for and on behalf of certain managed funds and other investors) ("Yorkville") for aggregate gross proceeds of approximately $4.0 million.
The first tranche of the Private Placement, as well as the concurrent bought deal public offering (the "Offering"), closed on January 18, 2023. Through the Offering and both tranches of the Private Placement, the Company issued a total of 5,961,000 Common Shares at a price of $2.70 per Common Share for gross proceeds of approximately $16.1 million.
"As CareRx's largest shareholder, we are pleased to provide continued financial support to CareRx", said Ralph Desando, Managing Director of Private Investments at Yorkville. "Our most recent investment demonstrates Yorkville's continued belief in the CareRx management team and the long-term growth trajectory of the Company."
The net proceeds of the Offering and the Private Placement are expected to be used by the Company for debt reduction, working capital and general corporate purposes.
About CareRx Corporation:
CareRx is Canada's leading provider of pharmacy services to seniors living communities. We serve over 93,000 residents in over 1,600 seniors and other congregate care 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 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 exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, 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.
Additional information relating to the Company and other public filings, is available on SEDAR at www.sedar.com.
SOURCE CareRX Corporation
For further information: David Murphy, President and Chief Executive Officer, CareRx Corporation, (416) 927-8400; Andrew Mok, Chief Financial Officer, CareRx Corporation, (416) 927-8400; Neil Weber, Investor Relations, LodeRock Advisors, (647) 222-0574