Mr. Puneet Khanna reports

CARERX ANNOUNCES NEW CREDIT AGREEMENT WITH NATIONAL BANK OF CANADA

CareRx Corp. has entered into and closed a new credit agreement with National Bank of Canada. The new credit agreement replaces CareRx's existing credit facility and will provide the company with a larger, more flexible capital structure to support its continued growth.

"Establishing this relationship with National Bank, a premier banking partner, is an important milestone for CareRx as we position the company for further growth," said Puneet Khanna, president and chief executive officer of CareRx. "The new credit agreement will strengthen our balance sheet, lower our overall cost of capital and give us dedicated capacity to invest in the business. It reflects the confidence our lender has in our strategy and provides us with the financial flexibility to capitalize on future growth and margin-enhancing opportunities."

Under the terms of the new credit agreement:

• At closing, the new credit agreement includes up to a $20-million senior secured revolving operating facility (the revolver), up to a $40-million senior secured term loan, and up to a $10-million senior secured facility dedicated to acquisitions and capital expenditures.
• Subject to the terms of the new credit agreement, CareRx can increase the principal amount of the revolver as well as the acquisition and capex facility by up to an aggregate of $20-million, giving the company additional access to capital as its needs evolve.
• The new credit agreement provides for the potential syndication of the credit facilities in the future, further increasing the company's potential availability of capital and financial flexibility.
• At closing, the company completed a draw of $40-million under the term loan, with no amounts drawn under the revolver or the acquisition and capex facility. The proceeds of this draw will be used to repay and discharge the outstanding amounts under the company's existing credit facility.
• The company will realize cost savings under the new credit agreement relative to its existing facility.
• The credit facilities are secured by substantially all of the assets of the company and its subsidiaries, and are subject to customary financial and non-financial covenants, including restrictions on incurring additional debt, distributions and acquisitions.

About CareRx Corp.

CareRx is Canada's leading provider of pharmacy services to seniors living 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 fulfilment centres strategically located across the country. This allows the company to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. The company uses best-in-class technology that automates the preparation and verification of multidose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. The company takes an active role in working with its home operator partners to promote resident health, staff education, and medication system quality and efficiency.

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