CareRx Corporation (TSX:CRRX) announced that it has completed its bought deal public offering and closed the first tranche of the concurrent private placement for aggregate gross proceeds of around $12.1 million.
The Canadian healthcare company issued an aggregate of 2,998,000 shares under the offering, including 35,000 shares issued as a result of the partial exercise of the over-allotment option granted to the syndicate of underwriters led by Cormark Securities Inc, at a price of $2.70 per share for aggregate gross proceeds of approximately $8.1 million.
In addition, CareRx issued 1,481,500 shares at a price of $2.70 per share, under the closing of the first tranche of the private placement for aggregate gross proceeds of approximately $4 million.
READ: CareRx plans to raise total gross proceeds of up to approximately $17.2M via a private placement and an offering
Closing of the second tranche of the private placement for an additional $4 million of gross proceeds is expected to occur on or prior to February 28, 2023, the company said.
Net proceeds from the offering and the private placement are expected to be used for debt reduction, working capital and general corporate purposes, CareRx noted.
CareRx is Canada's leading provider of pharmacy services to seniors living communities. It serves over 95,000 residents in over 1,600 seniors and other congregate care communities - long-term care homes, retirement homes, assisted living facilities, and group homes. The company is a national organization with a large network of pharmacy fulfillment centres strategically located across the country.
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