Record Orders Received in the Quarter Confirms Success of
Company Growth Strategy
- Record $5 million in new sales
booked in the quarter provides confirmation of the success of
strategy and renewed focus on fast-growing employer vertical
- Revenue up 105% to $2.3 million
in Q2 2022 compared to $1.1 million
in Q2 2021
- Carebook wholly owned subsidiary CoreHealth receives
$2.9 million contract, its largest
single contract ever, from a U.S. based global leader in employee
benefits
- Company receives $1.5
million order under its pharmacy solution agreement with its
foundational partner in the pharmacy segment
- Wholly owned subsidiary CoreHealth signs binding agreement with
Metro Inc.
- Amended and extended credit agreement with a Canadian tier 1
bank and its affiliate
- Rights offering successfully completed with aggregate gross
proceeds of $4.5 million
MONTREAL, Aug. 29,
2022 /CNW/ - Carebook Technologies Inc.
("Carebook" or the "Company") (TSXV: CRBK) (OTCPK:
CRBKF) (XFRA: PMM1), a leading Canadian provider of innovative
digital health solutions today announced its results for its second
quarter ended June 30, 2022.
"Our second quarter results continue the positive trend begun at
the start of our current fiscal year as we benefit from the
successful integration of our acquisitions of Wellness Checkpoint
and CoreHealth," commented Michael
Peters, Carebook CEO. "Our recent announcements of major
wins with tier one employers provides true validation of the
success of our strategy and renewed focus on the growing employer
market. Major companies across North
America, like Air Canada and Metro Inc., are recognizing
Carebook for the innovative and powerful digital health and
wellness solutions we offer that can provide meaningful relief to
the challenges faced by their clients and employees. When coupled
with the significant enhancements to our statement of work with our
major pharmacy client, we are solidifying Carebook as a major
player in the digital health and wellness market that positions us
for continued growth going forward."
Revenue
Revenue for the quarter ended June 30,
2022, was $2.3 million,
compared to $1.1 million in the
quarter ended June 30, 2021, an
increase of 105% which was primarily driven by the acquisitions of
InfoTech in Q2 2021 and CoreHealth in Q3 2021. Revenue generated in
the quarter ended June 30, 2021, was
28% from the employer vertical and 72% from the pharmacy vertical,
whereas revenue generated in the quarter ended June 30, 2022 was 25% pharmacy and 75%
employer.
Net loss
Net loss for the quarter ended June 30,
2022, was $2.4 million
compared to $2.8 million for the
quarter ended June 30, 2021, a
decrease of 14.6% year-over-year. While the acquisitions of
InfoTech and CoreHealth increased operating expenses for the
quarter ended June 30, 2022, this was
more than offset by the incremental revenue and cost synergies that
were implemented after the acquisitions.
Record New Contracts Booked
During the quarter, Carebook booked a record $5 million in new sales ranging from one to five
years in length. These contracts, from a diverse base of clients
located in the U.S. and Canada,
provide confirmation of the success of Carebook's strategy and
renewed focus on the fast-growing employer vertical as well as
significant additional work within the pharmacy sector.
Air Canada
On April 25, 2022, Carebook
announced a contract with Air Canada for the inclusion of the
Carebook CoreHealth platform in its employee portals. Air
Canada is using Carebook's
CoreHealth total well-being platform to connect their
employees to a comprehensive suite of leading health and
wellness programs, content and solutions.
CoreHealth's platform is easy to use and highly configurable
giving Air Canada the ability to deliver specific wellness
programming to meet the individual needs of its employees. The
CoreHealth solution builds upon the current organizational
understandings provided by Carebook's Wellness Checkpoint
assessment tool which has been in use with Air Canada since 2017.
When coupled together, these two leading solutions offer Air Canada
an unparalleled opportunity to curate relevant programming that
will help improve the health and wellness of all Air Canada
employees. Air Canada will be one of the first world-class
employers to benefit from the combined power of Carebook's
integrated assessment and wellness solutions and provides the
company with an international showcase for its solutions
capability.
Largest Single Contract Received by CoreHealth
On June 15, 2022, Carebook's
wholly owned subsidiary CoreHealth announced it had received its
largest single contract ever from a U.S. based global leader in
employee benefits offering services to more than one million plan
participants. The $2.9 million multi-year contract
contemplates the migration of all plan participants to the
CoreHealth platform over the next 36 months. CoreHealth's solution
was selected after a competitive process because of the
capabilities of its technology to offer flexible, configurable, and
scalable solutions that are above all easy to integrate.
Expansion of Statement of Work ("SOW") With Major Pharmacy
Client
On July 13, 2022, Carebook
announced a significant order under its pharmacy solution agreement
with its major pharmacy client. The additional statement of work
("SOW") expanding the scope under the agreement was signed
in June and is worth an incremental $1.5
million over a one-year term, representing an increase of 83%
in pharmacy contract value for Carebook.
Carebook has completed the expansion of its existing team for
the solution, nearly doubling capacity to deliver on the continued
development of its robust, customer-facing platform.
CoreHealth Announces METRO Inc. Partnership
CoreHealth today announced a binding agreement with Metro Inc.
(TSX: MRU)("Metro"), a food and pharmacy leader in Québec and
Ontario, for the provision of
digital health and well-being solutions. The agreement provides a
unique opportunity for CoreHealth to showcase the flexibility of
its platform as it adapts to new markets and continues to deliver
solutions that improve health and wellbeing. CoreHealth will be
supporting Metro's transformational initiatives in the industry,
promoting the health and well-being of Canadians.
Amendments to the Credit Agreement
On April 7, 2022, the Company
entered into an amendment to its credit facilities with a leading
Canadian Schedule I bank and one of its affiliates (together, the
"Lenders"). Under the amendment, the Lenders agreed to provide the
Company with (i) a $3 million demand
revolving facility (the "Revolving Facility") and (ii) a
$4 million non-revolving term loan
facility (the "Term Loan Facility" and together with the Revolving
Facility, the "Credit Facilities"). Moreover, the maturity date of
Term Loan Facility was extended to November
30, 2022, provided that the Company make a mandatory
prepayment of $1 million on the Term
Loan Facility which was paid in June
2022, after which the outstanding amount under the Term Loan
Facility was $3 million. The
applicable margin on each of the Credit Facilities was increased to
9.0%, effective as of April 7,
2022.
Effective July 31, 2022 the
Company entered into another amendment to its Credit Facilities
with the Lenders. Under the amendment, the maturity date of the
Credit Facilities was extended to August 31,
2023, provided that the Company completes a minimum capital
raise in the amount of $1 million,
makes a mandatory prepayment of $250,000 on the Term Loan Facility and maintains
a minimum cash balance financial covenant.
The above is a summary of the amendments to the Credit
Facilities. This summary is not intended to be complete and is
qualified in its entirety by the full text of the amendments, a
copy of which have been filed or will be filed on the Company's
SEDAR profile at www.sedar.com.
Rights Offering and Stand-by Commitment
Agreement
On May 17, 2022, Carebook
announced the completion of its previously announced rights
offering (the "Rights Offering"). The Rights Offering
resulted in the issuance of 17,107,749 common shares of Carebook at
a price of $0.15 per share for gross
proceeds to the Company of approximately $2.57 million.
In accordance with the terms of the stand-by commitment
agreement dated April 11, 2022
between the Company and UIL Limited, the Company also issued
12,892,251 additional common shares to UIL Limited, at a price of
$0.15 per share, for additional gross
proceeds to the Company of approximately $1.93 million, resulting in the Company receiving
aggregate gross proceeds of $4.5
million under the Rights Offering.
Following closing of the Rights Offering and including the
common shares issued to UIL Limited pursuant to the Stand-by
Commitment Agreement, Carebook now has 77,752,356 common shares
issued and outstanding.
Olivier Giner Appointed as New CFO
Mr. Olivier Giner joined as the
Company's new Chief Financial Officer effective as of June 1, 2022. Olivier, a lawyer by training, was
most recently the Chief Executive Officer of Adracare, a virtual
care software company based in Toronto which was sold to Well Health
Technologies in 2021. Prior to Adracare, Olivier was Vice President
and Chief Operating Officer of iGan Partners, a healthcare venture
capital fund. Olivier also spent 5 years at CIBC World Markets as a
technology, media and telecom investment banker. Olivier took over
from Carebook's Interim CFO, Jeffrey
Kadanoff.
Conference Call Details
A conference call will be held at 8:30 AM Eastern
on August 30, 2022 to discuss Carebook's financial
results for the second quarter. Participants may join the Company's
conference call by using an appropriate dial-in
number or via webcast (ID: 2312807). For those
unable to participate, playback will be made available an hour
after the event at 647-436-0148, or 1-888-203-1112, utilizing
passcode 2312807.
Carebook's unaudited consolidated financial statements and
accompanying notes, and related Management's Discussion and
Analysis for the three-month and six-month periods ended June
30, 2022 and 2021 are available on the Company's website
at www.carebook.com and on SEDAR
at www.sedar.com.
About Carebook Technologies
Carebook's digital health platform empowers its clients and more
than 3.5 million members to take control of their health journey.
During 2021, the Company completed the acquisitions of InfoTech
Inc. ("InfoTech"), a global leader in health and
productivity risk management, and CoreHealth Technologies Inc.
("CoreHealth"), owner of an industry-leading wellness
platform. In combination, these companies create a comprehensive
digital health platform that includes both assessment tools and the
technology to deliver complementary solutions. Carebook's shares
trade on the TSXV under the symbol "CRBK," on the OTC Markets under
the symbol "CRBKF," and are listed on the Open Market of the
Frankfurt Stock Exchange under the symbol "PMM1."
www.carebook.com
For further information contact:
Carebook Investor Relations Contact:
Olivier Giner, CFO
Email : ir@carebook.com
Telephone: (450) 977-0709
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Notice regarding forward-looking statements:
This release includes forward-looking information and
forward-looking statements within the meaning of Canadian
securities laws regarding Carebook, its subsidiaries and their
business. Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "is expected",
"expects", "scheduled", "intends", "contemplates", "anticipates",
"believes", "proposes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
in this release include statements with respect to revenue
generating contracts, the Company's growth strategy, the overall
value of recently signed contracts, and the expected benefits from
completed and integrated acquisitions. Such statements are based on
the current expectations of the management of Carebook and are
based on assumptions and subject to risks and uncertainties.
Although the management of Carebook believes that the assumptions
underlying these statements are reasonable, they may prove to be
incorrect, and undue reliance should not be placed on such
forward-looking statements. The forward-looking statements reflect
the Company's current views with respect to future events based on
currently available information and are inherently subject to risks
and uncertainties. The forward-looking events and circumstances
discussed in this release may not occur by certain specified dates
or at all and could differ materially as a result of known and
unknown risk factors and uncertainties affecting the Company,
including economic factors, management's ability to manage and to
operate the business of Carebook, management's ability to
successfully integrate the Company's completed acquisitions and to
realize the synergies of such acquisitions, management's ability to
successfully complete product studies, the equity markets generally
and risks associated with growth and competition, as well as the
risk factors identified in the Company's management's discussion
and analysis for the year ended December 31,
2021 and described under the heading "Item 21 – Risk
Factors" in the Listing Application of the Company dated
September 28, 2020, each of which can
be found on SEDAR under the Company's profile at
www.sedar.com. Although Carebook has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. No
forward-looking statement can be guaranteed. Except as required by
applicable securities laws, forward-looking statements speak only
as of the date on which they are made and Carebook does not
undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise. In addition, the current situation and
future developments with respect to the COVID-19 pandemic could
cause certain of the assumptions and information set forth herein
or the fact that on which such assumptions are based to differ
materially from previous expectations including in respect of
demand for our products, access to debt and equity capital and
other factors.
SOURCE Carebook Technologies Inc.