TORONTO, Aug. 28, 2023 /CNW/ - CareRx Corporation ("CareRx" or "the Company") (TSX: CRRX) today announced that its Board of Directors has authorized a normal course issuer bid (the "NCIB") to purchase for cancellation up to 1,000,000 of its common shares ("Shares"), representing approximately 1.73% of its 57,734,600 issued and outstanding Shares as at August 28, 2023. The NCIB is subject to the approval of the Toronto Stock Exchange (the "TSX").
The Company is focused on creating long-term shareholder value and it believes that its shares represent an attractive investment opportunity, and that purchases under the NCIB will enhance the value of the Shares held by the remaining shareholders. The NCIB will provide optionality to return additional capital to shareholders and the decision to repurchase CareRx shares will be evaluated against other investment opportunities and internal leverage guidelines.
It is expected that this normal course issuer bid will begin on or around September 7, 2023 and will end at the latest on or around September 6, 2024. Daily purchases on the TSX under the NCIB will be limited to 25% of the average daily trading volume on the TSX for the six months ending July 31, 2023, other than purchases made pursuant to the block purchase exception. The actual number of Shares to be purchased, and the timing of any such purchases, will be determined by the Company, subject to the applicable rules and policies of the TSX. The Company will only make purchases under the normal course issuer bid once all regulatory approvals are obtained, and the Shares acquired will be cancelled.
Although the Company presently intends to purchase Shares under its NCIB, there can be no assurances that any such purchases will be completed. The purchases will be made through the facilities of the TSX and/or any alternative trading system in Canada. The Company will pay the market price for the common shares at the time of acquisition and the purchases will be made in accordance with applicable regulatory requirements.
About CareRx Corporation
CareRx is Canada's leading provider of pharmacy services to seniors living communities. We serve over 95,000 residents in over 1,500 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.
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation, including statements relating to the NCIB. 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. 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 general business risks, exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, 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
For further information: For more information, visit www.carerx.ca or contact: Puneet Khanna, President & 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, firstname.lastname@example.org, www.loderockadvisors.com