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
Additional information relating to the Company and other public
filings, is available on SEDAR at www.sedar.com.
SOURCE CareRX Corporation