Mr. Olivier Giner reports

CAREBOOK ANNOUNCES RECORD REVENUE FOR Q3 AND DELIVERS POSITIVE ADJUSTED EBITDA(1) FOR THE FIRST TIME

Carebook Technologies Inc. has released its results for the quarter ended Sept. 30, 2023.

Highlights:

• Record revenue for the quarter up 69% to $3.5M for Q3 2023 compared to $2.1M for Q3 2022.
• As a result of significant revenue growth and cost optimization initiatives, Carebook achieved its first quarter of positive Adjusted EBITDA(1), with Adjusted EBITDA(1) of $0.1M for Q3 2023, compared to Adjusted EBITDA(1) loss of $(1.1)M for Q3 2022, an improvement of $1.2M relative to Q3 2022.
• Adjusted EBITDA Margin(1) of 3% in Q3 2023 compared to (54)% in Q3 2022.
• Loss from operations for Q3 2023 was $(0.4)M, an improvement of $1.2M or 77%, when compared to Q3 2022.
• Net Loss for Q3 2023 was $(0.4)M compared to Net Loss for Q3 2022 of $(1.7)M, an improvement of 1.3M or 77% year-over-year.
• ARR(2) of $11.6M as of September 30, 2023, an increase of 20% over the same date in 2022.

"We continue to execute on our business plan, completed several large implementations so far during the year and helped our clients onboard a significant amount of users during the nine months ended September 30, 2023 indicating strong demand for health and wellness services continues to exist" commented Michael Peters, Carebook CEO. "We reached another new high this quarter in terms of our revenue and achieved positive Adjusted EBITDA(1) for the first time. We expect the organic revenue growth trend to continue into the year end, and we will continue managing cost with an objective of minimizing cash burn and increasing our profit margins in the coming months. We are on course to deliver Adjusted EBITDA(1) break even or better in fiscal 2024, establishing a strong foundation for durable long-term growth"

Q3 2023 Highlights

Revenue

Revenue for the quarter ended September 30, 2023 was $3.5M compared to $2.1M for the quarter ended September 30, 2022, an increase of 69% which was primarily driven by organic growth in the pharmacy vertical and an increase in license revenue from CoreHealth offset by a decrease in license revenue at Infotech. Revenue generated in the quarter ended September 30, 2023, was 63% from the employer vertical, an increase from 59% during the same quarter in 2022 due to significant additions of licensed users by customers in our employer vertical. Recurring revenue from the employer vertical business is expected to continue increasing in coming months, following the implementation of several large customers and their ongoing efforts adding incremental end users on our platforms.

Loss from Operations and Net Loss

Loss from operations for the quarter ended September 30, 2023, was $(0.4)M compared to $(1.6)M in the same period of 2022, an improvement of $1.2M or 77%. The improvement was due to lower sales and marketing costs and a significant increase in revenue during the quarter when compared to the same period last year.

Net loss was $(0.4)M for the quarter ended September 30, 2023, compared to a loss of $(1.7)M for the quarter ended September 30, 2022, an improvement of 77%. The variance is driven mostly by higher revenue and a lower loss from operations.

Adjusted EBITDA (1)

Adjusted EBITDA(1) for the quarter ended September 30, 2023 was positive for the first time, at $0.1M compared to an Adjusted EBITDA(1) loss of $(1.1)M for the quarter ended September 30, 2022, an improvement of $1.2M over the same period in 2022. The corresponding Adjusted EBITDA Margin(1) for the quarter ended September 30, 2023 was 3% compared to (54)% in Q3 2022, and represented a meaningful improvement. Carebook achieved its goal of generating positive Adjusted EBITDA(1) during the quarter demonstrating management's fortitude and discipline to continue to generate increasing revenue while managing costs to reach profitability.

Annual Recurring Revenue

ARR(2) was $11.6M as at September 30, 2023, an increase of $1.9M, or 20%, compared to an ARR(2) of $9.6M as at September 30, 2022. This increase was primarily driven by new enterprise customers and organic growth with existing customers. Of the $11.6M of ARR(2) reported, 61% originated from clients outside of Canada.

Renewal and Amendment of Credit Facilities, Future Capital Raise

On October 20, the Company renewed and amended its existing senior credit facilities with a leading Canadian Schedule I bank (the "Lender"), effective as of October 19, 2023 (the "Renewal Date"). Under the amendment, the Lender agreed to (i) continue providing the Company with a $3M revolving facility (the "Revolving Facility") and (ii) be subrogated to all rights of its affiliate regarding a $1.4M non-revolving term loan facility (the "Term Loan Facility" and together with the Revolving Facility, the "Credit Facilities"). Moreover, the maturity date of the Credit Facilities was extended until September 30, 2024 (the "Maturity Date")

Beginning on the Renewal Date, the applicable margin on the Revolving Facility was decreased to 5.8% over prime, and the applicable margin on the Term Loan Facility was decreased to 5.3% over prime. Applicable margins under both facilities are subject to additional reductions should the Company complete an additional capital raise for aggregate minimum gross proceeds equal to $2.0M on or before the Maturity Date.

The Term Loan Facility is subject to mandatory monthly prepayments of $50,000 on the 15th of each month, commencing on November15th, 2023, such that the Term Loan Facility will be reduced to $0.8M by the Maturity Date. The Credit Facilities are subject to new financial covenants, where the Company must maintain a minimum cash runway and demonstrate minimum revenue growth. The Credit Facilities continue to be secured by a first-ranking security interest in all of the present and future property and assets of the Company and certain of its subsidiaries.

While the credit facilities provide Carebook with the necessary flexibility in order to carry operations, Carebook is currently evaluating various financing opportunities and expect to make additional announcements in the near future as definitive plans are being finalized.

Carebook Welcomes Andrea Hunt as Chief Commercial Officer

On September 12, 2023, Carebook announced the appointment of Andrea Hunt as its new Chief Commercial Officer. Andrea brings to Carebook a rich history of driving exceptional growth for businesses on a global scale. Working with the Carebook Executive Team, she will play a pivotal role in developing and executing revenue growth strategies while leading Carebook's Sales & Marketing efforts.

With over two decades of experience leading digital marketing and sales teams for some of the largest corporations in the world, Andrea has established a deep and meaningful track record of exceptional performance. Her career trajectory has been punctuated by her success in executive roles across North America and Europe, where she has showcased her remarkable ability to elevate iconic brands and generate significant value for shareholders.

Financial Outlook

Carebook's financial outlook continues to be positive for 2023. The Company is poised to achieve significant revenue growth while effectively managing its costs and

delivering sustained growth in cashflows. Carebook's strong organic growth and efficient cost management initiatives will allow the Company to continue to successfully execute on its strategy. Carebook is expecting to maintain strong performance in 2023 for the entire Company as a whole. To complement its organic growth strategy, Carebook will continue to seek out accretive acquisitions and partnerships that improve the accessibility, quality, and functionality of its comprehensive solutions, surrounding ecosystem, and supporting services. Carebook has adopted a disciplined approach towards exploring strategic M&A opportunities in order to grow its reach in other markets and offer new services to its customer base, while maintaining a focus on its organic growth. This financial outlook is fully qualified and based on a number of assumptions and subject to a number of risks described under the headings "Financial Outlook Assumptions" and "Notice Regarding Forward-Looking Statements" of this press release.

Conference Call Details

A conference call will be held at 8:30 AM Eastern on November 10, 2023 to discuss Carebook's year end financial results. Participants may join the Company's conference call by using the following information

Conference Call Details

Date Friday, November 10, 2023

Time: 8:30 a.m. Eastern Time

Local: 416-764-8659

North American Toll Free: 1-888-664-6392

Conference Replay

Local: 416-764-8677

North American Toll Free: 1-888-390-0541

Entry Code: 415161 #

Expiration Date: 11/17/2023

Conference Replay

Local: 416-764-8677

North American Toll Free: 1-888-390-0541

Entry Code: 415161 #

Expiration Date: 11/17/2023

Carebook's interim condensed consolidated financial statements and accompanying notes, and Management's Discussion and Analysis for the quarter ended September 30, 2023 are available on the Company's website at www.carebook.com and on SEDAR+ at www.sedarplus.ca.

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."

We seek Safe Harbor.