CareRx Receives Receipt for Short Form Prospectus

Aug 11, 2020
7:00am

TORONTO, Aug. 11, 2020 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of specialty pharmacy services to seniors, has now received a receipt (the "Final Receipt") for its final short form prospectus dated August 10, 2020 (the "Prospectus"). The Prospectus qualifies the distribution of an aggregate of 2,875,000 common shares of the Company (the "Common Shares"), which are issuable for no additional consideration upon the deemed exercise of 57,500,000 special warrants of the Company (the "Special Warrants") that were issued under a bought deal private placement conducted by a syndicate of underwriters led by Beacon Securities Limited that closed on June 4, 2020 (the "Offering"). The Special Warrants were issued at a price of $0.20 per Special Warrant for aggregate gross proceeds of $11,500,000, which included the exercise in full of the underwriters' over-allotment option.

Pursuant to a special warrant indenture dated June 4, 2020 between the Company and TSX Trust Company, the Special Warrants will be automatically exercised into Common Shares, without payment of any additional consideration, on the third business day after the Final Receipt is obtained, being August 13, 2020 (the "Qualification Date"). In addition, the 3,450,000 underwriters special warrants that were issued to the underwriters at the closing of the Offering will be converted into 172,500 Common Share purchase warrants (the "Underwriter Warrants") on the Qualification Date, with each Underwriter Warrant entitling the underwriters to purchase one Common Share at an exercise price of $4.40 until June 4, 2022.

For more information on the Offering, please refer to the Prospectus, as well as the Company's news release dated June 4, 2020, available on the Company's profile on SEDAR at www.sedar.com.

About CareRx Corporation

CareRx (formerly Centric Health Corporation) is Canada's leading provider of specialty pharmacy services to seniors. We serve approximately 50,000 residents in over 900 seniors and other communities, including 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

For further information: David Murphy, President and Chief Executive Officer, CareRx Corporation, 416-927-8400; Andrew Mok, Chief Financial Officer, CareRx Corporation, 416-927-8400