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.
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.
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