Carebook Announces Renewal and Amendment of Credit Facilities

MONTREAL, Oct. 20, 2023 /CNW/ - Carebook Technologies Inc. ("Carebook" or the "Company") (TSXV: CRBK) (OTCPK: CRBKF) (XFRA: PMM1), a leading Canadian provider of innovative digital health solutions, is pleased to announce it has 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 has agreed to (i) continue providing the Company with a C$3 million revolving facility (the "Revolving Facility") and (ii) be subrogated to all rights of its affiliate regarding a C$1.4 million non-revolving term loan facility (the "Term Loan Facility" and together with the Revolving Facility, the "Credit Facilities"). Moreover, the maturity date of Credit Facilities has been extended until September 30, 2024 (the "Maturity Date")

Beginning on the Renewal Date, the applicable margin on the Revolving Facility has been decreased to 5.8% over prime, and the applicable margin on the Term Loan Facility has been 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 C$50,000 on the 15^th of each month, commencing on November15^th, 2023, such that the Term Loan Facility will be reduced to $0.8 million by the Maturity Date. As at the date hereof, the Term Loan Facility has been fully drawn and the Company may not borrow any other borrowings under the Term Loan Facility.

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 continues 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.

"We are pleased to confirm the renewal of our credit facilities and the continued support from our lender," stated Olivier Giner, CFO of Carebook. "We are also currently evaluating various financing opportunities and expect to make additional announcements in the near future as definitive plans are being finalized."

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., a global leader in health and productivity risk management, and CoreHealth Technologies Inc., 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."

www.carebook.com 

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes forward-looking information and forward-looking statements within the meaning of Canadian securities laws regarding Carebook, its subsidiaries and their business. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of Carebook and are based on assumptions and subject to risks and uncertainties. Although the management of Carebook believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and undue reliance should not be placed on such forward-looking statements. The forward-looking statements reflect the Company's current views with respect to future events based on currently available information and are inherently subject to risks and uncertainties. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including economic factors, management's ability to manage and to operate the business of Carebook, management's ability to identify attractive M&A opportunities, management's ability to successfully integrate the Company's completed acquisitions and to realize the synergies of such acquisitions, management's ability to successfully complete product studies, the equity markets generally and risks associated with growth and competition, management's ability to achieve profitability for the Company, as well as the risk factors identified in the Company's management's discussion and analysis for the year ended December 31, 2022, a copy of which can be found on SEDAR under the Company's profile at www.sedar.com. Although Carebook has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Carebook does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE Carebook Technologies Inc.