Acquisition increases the number of residents serviced by 725 and is expected to add over 1,200 additional beds over four years
TORONTO, May 30, 2022 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, announced today it has closed the previously announced acquisition of Hogan Pharmacy Partners Ltd. ("Hogan"), a long-term care pharmacy serving 725 residents in long-term care and retirement homes in Ontario (the "Transaction").
In connection with closing of the Transaction, CareRx has signed a new seven-year contract with Hogan's largest customer, a regional seniors living operator, representing approximately 85% of the beds serviced by Hogan. Hogan is expected to increase its beds serviced by over 1,200 beds by the fourth anniversary of closing based on new bed license allocations and other anticipated growth plans for their customers, which would increase the total beds serviced to approximately 2,000.
"With the closing of this acquisition, CareRx adds a pharmacy services model that is truly unique in our industry, enabling us to provide our home partners with additional choice from a service delivery standpoint, further differentiating us from our competitors, while also extending our technology leadership," said David Murphy, President and Chief Executive Officer of CareRx.
At closing of the Transaction, CareRx issued the vendors of Hogan 481,400 CareRx common shares with a value of $2.2 million and a $2.2 million vendor take-back note, of which $1 million is repayable after 18 months, $0.4 million is repayable after 36 months, and the final $0.8 million is repayable after 48 months with this final repayment subject to downward adjustment to the extent that certain expected additional bed growth is not achieved by the fourth anniversary of closing.
About CareRx Corporation
CareRx is Canada's leading provider of pharmacy services to seniors living communities. We serve approximately 96,000 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.
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. 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.
SOURCE CareRx Corporation
For further information: David Murphy, President & Chief Executive Officer, CareRx Corporation, 416-927-8400; Lawrence Chamberlain, Investor Relations, LodeRock Advisors, 416-519-4196, firstname.lastname@example.org