TORONTO, Nov. 25,
2024 /CNW/ - CareRx Corporation ("CareRx" or
"the Company") (TSX: CRRX) today announced that the final tranche
of the unsecured convertible debentures (the "Convertible
Debentures") originally issued by the Company on
November 22, 2019, have been converted into
common shares ("Common Shares") at a price of C$3.00 per Common Share pursuant to the terms of
the Convertible Debentures.
As part of a private placement financing announced on
September 30, 2019, CareRx issued
$27,500,000 aggregate principal
amount of 8.25% unsecured Convertible Debentures to Yorkville Asset
Management, Inc. and certain shareholders and directors of the
Company. Each Convertible Debenture was convertible into Common
Shares at the option of the holder at a conversion price of
$3.00 per Common Share (the
"Conversion Price"). In addition, the Convertible Debentures had a
mandatory conversion feature such that 25% of the outstanding
original principal amount of the Convertible Debentures
automatically converted into Common Shares at the Conversion Price
at the beginning of years two, three, four and five following their
issue date. The Convertible Debentures have now been extinguished
in full.
"The conversion of the final tranche of the Convertible
Debentures into Shares further simplifies our balance sheet and
decreases our annual interest expense," said Puneet Khanna, President & Chief Executive
Officer of CareRx. "Since the end of the third quarter of 2023, we
have reduced total outstanding debt by over $57 million from approximately
$104 million. This
continued deleveraging has substantially improved our cash flow,
lowered our cost of capital and better positioned the Company to
capitalize on future growth and margin-enhancing
opportunities."
About CareRx Corporation
CareRx is Canada's leading provider of pharmacy
services to seniors living communities. We serve approximately
89,000 residents in approximately 1,450 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 regimens. 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 general business risks, the
Company's exposure to and reliance on government regulation and
funding, risks related to employee recruitment and retention, the
Company's liquidity and capital requirements, exposure to epidemic
or pandemic outbreak, reliance on contracts with key care operators
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
